Ghana’s 2024 budget and economic statement reveal a strategic move to bolster the nation’s entrepreneurial landscape. The Venture Capital Trust Fund (VCTF) is set to commit $14 million into local venture capital funds.
This development follows the noteworthy success of the VCTF in leading the Initial Close of the maiden fund for the Mirepa Capital SME Fund I (MCSFI) last year. Managed by Mirepa Investment Advisors Ltd., an authorized investment advisor with a robust capital base of GHS 120 million ($10.5M), the MCSFI aims to bridge 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.
Focusing primarily on sectors such as light manufacturing, technology, and cleantech ventures, the MCSFI has its sights set on businesses within agribusiness/agroprocessing, education, healthcare, financial services, and business services sectors, including industrial and mining support. This noteworthy achievement establishes the fund as the second in Ghana to be anchored solely by local investors, led by the VCTF and prominent pension funds, following the precedent set by Injaro’s IGVCF fund.
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In a further 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 USD20 million and backed by local pension funds — a groundbreaking development for Ghana. Jerry Parkes, CEO of Injaro Investments, stated that the fund is designed to support mission-focused SMEs.
Cumulatively, 2023 witnessed the Venture Capital Trust Fund committing $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.
Venture Capital Trust Fund Ghana
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard