Ghana's 2024 Budget Unveils $14 Million Boost for Local Venture Capital

To enhance the entrepreneurial landscape, Ghana's 2024 budget and economic statement reveal plans for the Venture Capital Trust Fund (VCTF) to inject $14 million into local venture capital funds.

This initiative follows the remarkable success of the VCTF in spearheading the Initial Close of the inaugural fund for the Mirepa Capital SME Fund I (MCSFI) last year.

Managed by Mirepa Investment Advisors Ltd., an authorized investment advisor boasting a robust capital base of GHS 120 million ($10.5M), the MCSFI seeks to address the funding gap for Ghanaian small and medium-sized enterprises (SMEs) within the GHS 2.4M to GHS 24M ($200K — $2M) range, providing crucial patient capital support.

With a focus on sectors such as light manufacturing, technology, and cleantech ventures, the MCSFI targets businesses in agribusiness/agroprocessing, education, healthcare, financial services, and business services, including industrial and mining support.

This milestone positions the fund as Ghana's second to be anchored solely by local investors, led by the VCTF and prominent pension funds, following the precedent set by Injaro's IGVCF fund.

In another strategic move, the Venture Capital Trust Fund has also invested in Injaro Investments, an Africa-focused private equity and private credit fund manager.

Injaro recently announced the launch of its third fund, totaling USD 20 million and backed by local pension funds — a groundbreaking development for Ghana.

Jerry Parkes, CEO of Injaro Investments, emphasized that the fund is designed to support mission-focused SMEs.

In the cumulative efforts of 2023, the Venture Capital Trust Fund allocated $16 million to various initiatives, including the Injaro Investments Limited Ghana Venture Fund, Industrial Support Fund, Mirepa Capital Ltd SME Fund, and Wangara Green Ventures.

This strategic allocation underscores Ghana's commitment to fostering a vibrant entrepreneurial ecosystem and supporting businesses across diverse sectors.

Charles Rapulu Udoh / Afrikan Heroes