Ghana’s Venture Capital Trust Fund (VCTF) is launching two programs to address the skill gap in the country’s booming venture capital and private equity (PE) sector.
The Venture Capital Analyst Programme (V-CAP) and Fund Manager Development Programme (FMDP) aim to cultivate a new generation of talent to manage the projected surge in investments.
Addressing a Growing Market
Ghana’s venture capital market is expected to hit US$290.3 million by 2024, with a significant portion (US$237.8 million) coming from Later Stage investments. Percival Ofori Ampomah, General Manager of VCTF, emphasized the need to develop a local pool of skilled professionals to handle this growth.
Building a Strong Ecosystem
The VCTF has played a key role in establishing Ghana as a PE/VC hub in Africa. Initiatives like the Ghana Venture Capital and Private Equity Association (GVCA) have fostered a structured and well-supported venture capital ecosystem.
Equipping Local Investors
The V-CAP and FMDP programs target the Later Stage sector, expected to dominate the market. Training programs will equip local investors, including pension funds, with the knowledge and skills required for venture capital investments, particularly in later stages. VCTF acknowledges the initial focus on banks and the upcoming expansion to pension funds. The aim is to ultimately include long-term investors like insurance companies.
Nurturing SMEs, Boosting the Economy
This focus on local capacity building is crucial as the market reaches its projected size. A robust venture capital industry will provide financial backing and expertise to fuel the growth of SMEs, a significant contributor to Ghana’s GDP and employment.
Challenges and the Road Ahead
Despite the projected growth, challenges remain. VCTF highlights a funding gap exceeding US$82 million, emphasizing the need for increased investment. The organization is also working on legal reforms, such as a Limited Partnership Act, to create a more attractive environment for foreign investors.
By investing in its people and regulatory framework, the VCTF is laying the groundwork for a thriving venture capital ecosystem in Ghana. This will empower SMEs and contribute to the overall growth of the Ghanaian economy.
