Venture Capital Fund injects GH¢21.5m into Ghanaian economy

The Venture Capital Trust Fund (VCTF) has invested GH¢21.5 million into Ghana’s economy since 2006, the GNA quotes an official of the Fund as saying.

A Senior Investment Analyst of the Fund, Percival Ampomah said a greater part of that investment, over GH¢500,000 went into the fishing industry in the Volta Region.

The VCTF was set up by the Venture Capital Trust Fund Act (Act 680).

In practice, the Trust Fund is a fund of funds and operates through Institutional Partnerships by means of joint venture arrangements that establish Venture Capital Finance Companies (VCFCs). The Fund has said on its website.

VCFCs are encouraged to invest in all sectors of the economy, but are precluded from investing in businesses that engage in imports to sell.

It also indicates that the maximum funding limit is 15% of total capitalization of a VCFC and a minimum of $25,000. For purposes of VCFC investments, an SME is defined under the VCTF ACT 680, as a business whose total asset base, excluding land and building, does not exceed the cedi equivalent of $1.0million.

By Emmanuel K. Dogbevi