The Venture Capital Trust Fund (VCTF) has reached an agreement with two fund managers, Mirepa Investment Advisors and Wangara Green Ventures, to disburse some 35 million yen to more viable small and medium enterprises.
The support, known as the Startup Catalyst Fund, brings the total deployment of capital towards SME financing to €60 million in two months.
Speaking to Joy Business, managing director of Venture Capital Trust Fund, Yaw Owusu-Brempong said the initiative aims to boost local production as part of measures to control the rate of depreciation of the cedi.
“We are at a time where, because of what is happening to the cedi, if we start consuming made in Ghana, there will definitely be less pressure on the cedi,” he said.
Mr Owusu-Brempong added “so most of our funds are going to focus on agricultural processing as well as environmentally conscious businesses like waste management”.
Mirepa Investment Advisors and Wangara Green Ventures were selected through a competitive process for their expertise and ability to provide the necessary support to identified SMEs while accelerating growth.
In an interview with Joy Business, a Mirepa representative said the investment couldn’t have come at a better time.
“For us, this is an exciting time as this is the time when we believe we should be supporting local businesses, especially given what is happening with the macroeconomic situation in Ghana,” he said. .
For his part, Ebenezer Arthur de Wangara said that over the next five years, the firm expects to have crossed 10 million in assets under management, having backed more than 20 companies and expanding its own investment activities beyond the Ghana and helping local businesses to expand beyond the sub-region.
“We believe that Ghana needs to build its economy but build it in a green way and that is why we are supporting these green businesses to ensure that we are building a green economy and not just for fun,” he said. he adds. .
The CEO of Venture Capital Trust Fund said his company intends to deploy around 100 million yen by the end of 2022.
Director of the Finance Ministry’s Financial Sector Division, Sampson Akligoh, described the VCTF investment as timely, adding that it comes at a time when the country continues to struggle with external factors that have enabled the recovery. economic impact of Covid -19 pandemic difficult.
The ministry “looks forward to SMEs becoming aware of their climate footprint and their impact on the environment,” he said.
Over the next five years, VCTF intends to deploy €1.5 billion to support SMEs.
“With this amount, we intend to leverage approximately 5¢ for every 1¢ spent, thereby increasing the capital pool for financial industry stakeholders,” the CEO said.
He added that his team will continue to support the development of the VC/PE ecosystem through a technical support service.
VCFT intends to build the capacity of the next generation of fund managers through a newly developed flagship program such as the Fund Manager Development Program (FMDP) with the support and partnership with Ghana Venture Capital and Private Equity Association (GVCA) and the Venture Capital Analyst Program (V-CAP) to build the analytical skills of young graduates for jobs in private equity and venture capital.
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