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Private Equity can be a Gamechanger for Ghana’s Economic Recovery, says GVCA

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The Ghana Venture Capital and Private Equity Association (GVCA) has urged the government to implement the Limited Partnership Act to enable the private equity and venture capital industry to thrive. This was disclosed by the board chairman of the association, Matthew Boadi Adjei, at the end of the association’s maiden conference in Accra. The two-day conference on “Leveraging Private Equity for Ghana’s Economic Recovery” was a platform to discuss private equity as a catalyst for economic growth.

The conference was attended by various capital owners, including pension trustees, insurance companies, asset managers, and members of the association who explored different models of private capital. Mr Boadi highlighted the potential of private equity in providing long-term capital to Small and Medium-Term Enterprises (SMEs) in Ghana.

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With his extensive experience in private equity, Mr Boadi noted that private equity could help SMEs to set up proper management structures and governance. The industry can navigate pervasive risks and provide sustainable jobs while pursuing a double bottom line of providing returns for investors and fostering sustainable job creation.

Despite the challenges faced by the Ghanaian economy, private equity can provide alternative options for investment leading to inclusive and innovative solutions to navigate the storm. The association is determined to build the capacity of emerging managers to ensure that there are enough managers to mobilize and invest capital in supporting SMEs that create jobs and livelihoods for Ghanaians. The fund is looking to deploy a commitment of about Gh¢200 million towards this goal.

The Chief Executive Officer of the Venture Capital Trust Fund, Yaw Owusu-Brempong, emphasized that investor comfort with regulations and trends is critical for attracting capital into Ghana’s private equity industry. He added that the conference was a unique opportunity for businesses, investors, and fund managers to connect, explore and dialogue on how to tap into private capital, a critical source of financing in an emerging market like Ghana, where the capital markets are not deep, and traditional debt financing is expensive.

The conference brought together 200 members from across Africa and was sponsored by companies such as FSD Africa, VCTF, and British International Investments. The GVCA conference is a significant step in the right direction towards the growth and development of Ghana’s private equity and venture capital industry. For the most part, private equity can support SMEs to achieve growth and long-term sustainability, creating jobs, and contributing to the economic recovery of Ghana.

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