The Ghana Venture Capital Trust Fund (VCTF) has announced plans to establish a specialized fund to support small and medium enterprises (SMEs) under the government’s 24-Hour Economy initiative.
The move aims to scale up existing businesses and enhance productivity by providing critical financing for expansion.
Michael Abbey, Acting CEO of the VCTF, disclosed the plans during the Ghana Venture Capital Conference, noting that discussions are ongoing with the 24-Hour Economy Secretariat at the Presidency to finalize the initiative. “We’re looking at establishing the 24-hour economy SME fund to support businesses that are already in existence but need scaling up,” Abbey said. He emphasized that the fund would complement the VCTF’s existing partnerships with fund managers while strengthening Ghana’s venture capital and private equity ecosystem.
The 24-Hour Economy Policy, a key government program, seeks to enable round-the-clock business operations to boost employment, productivity, and economic resilience. The new SME fund aligns with this vision by providing businesses with the capital needed to expand operations, meet rising demand, and create jobs.
Established in 2004, the VCTF has played a pivotal role in bridging financing gaps for Ghanaian SMEs, particularly those struggling to secure traditional bank loans. By partnering with fund managers and financial institutions, the fund has facilitated growth for innovative businesses across various sectors.
The proposed fund underscores the VCTF’s commitment to driving Ghana’s economic transformation, where increased productivity and private sector expansion are central to sustainable development. As the initiative takes shape, industry stakeholders will be watching closely to assess its impact on SME growth and the broader push for a 24-hour economy.
Ghana’s SME sector, which contributes significantly to employment and GDP, has long faced challenges in accessing affordable financing. If successfully implemented, the fund could provide a much-needed boost to businesses looking to capitalize on extended operating hours and emerging market opportunities.
The VCTF’s focus on ecosystem development suggests a long-term strategy to position Ghana as a hub for venture capital and private equity investment in West Africa.
