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Weekly Insights – Ghana – 17/03/2017 – Nimed Capital Limited

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THOUGHT OF THE WEEK


Overview of Ghana’s Venture Capital Trust Fund & the Ghc 219 M Budgetary Allocations

The Venture Capital Trust Fund (VCTF) in Ghana was established in 2004 through an Act of Parliament (VCTF Act 680). The purpose of the Fund is to provide low cost financing to Small and Medium Enterprises (SMEs), so as to enable them expand, create wealth and jobs. This is achieved through the provision of credit and equity financing to eligible Venture Capital Finance Companies to support SMEs, as well as the provision of monies to support the activities and programs for the promotion of venture capital financing as determined by the Board.

Over the last 4 years, the Fund has been dormant without budget allocation. However, there has been a significant budget allocation of GHC 219million in the 2017 budget. In an economy where almost 90% of registered companies fall under the SMEs bracket, reviving the Fund is an effort to boost the economy in the long run.

The target group of the fund has been recognized as the catalyst for economic growth of the country, as they provide a major source of income and employment. Although, the Fund is ever revolving, SMEs in priority sectors such as agriculture, pharmaceuticals, ICT, tourism and energy (exception of imports to sell) will feel more positive impacts from the Fund.

In addition to equity and debt investments, VCTF organizes training and capacity building programs with top-tier institutions and management consultants to target companies.

Download Full Report: https://nimedcapital.com/nimed-research-weekly-25-jan-2019/

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