The Venture Capital Trust Fund (VCTF) is positioning Ghana to become a leading destination for venture capital and private equity investment in Africa, with ambitious plans to scale up support for startups and small businesses across the country.

Speaking on the Citi Breakfast Show on Tuesday, May 13, 2025, Chief Executive Officer of the Trust Fund, Michael Abbey, said the long-term vision is to establish Ghana as a premier hub for venture capital, private equity, and transactional ecosystems, capitalising on the opportunities presented by the African Continental Free Trade Area (AfCFTA).

“Our long-term dream is to position Ghana as a premier destination for venture capital, private equity, and transactions within the ecosystem—leveraging AfCFTA and intra-African trade,” Abbey stated.

He noted that in the short to medium term, the Fund is working to align with government initiatives, particularly targeting entrepreneurship development. One of the key programmes identified is the Adumawura Programme, which seeks to support and grow 10,000 startups annually.

“In the short to medium term, we are looking at plugging into government programming. For example, we plan to support the Adumawura Programme to nurture and grow 10,000 startups yearly,” Abbey said.

Outlining the operational model of the Trust Fund, Abbey explained that the agency employs a public-private partnership structure, working with independent fund managers who have the technical expertise to invest directly in small and medium-sized enterprises (SMEs).

“As a public agency, we partner with fund managers who are privately run. They bring in the required technical expertise to manage and grow the investments,” he added.

Persivaer Ofori Ampomah, the General Manager of the Fund, also highlighted the Fund’s existing impact in various sectors, including agro-processing and education.

“For the footprint we’ve left in agro-processing, education, and other industries, we can say a lot has already been done,” he said.

The Venture Capital Trust Fund continues to play a pivotal role in Ghana’s entrepreneurship ecosystem, mobilising capital to build sustainable businesses, create jobs, and foster innovation.

Ghanaian SMEs which have so far benefited from previous Oasis Ghana funds include Legacy Girls College, Everpure Ghana Water, SINEL Specialist Hospital and Metropolitan Health.

At the launch of the second series of Oasis Africa Fund II (OAF II) in Accra yesterday, the Chief Executive Officer (CEO) of Oasis Capital, Matthew Boadu Adjei, said the focus of the fund was to invest in SMEs.

“A lot of African private equity firms originally started as SME financiers, but after a few years, they ventured into mid-tier, mid-capital and high capital investments and this is because SME financing is difficult and risky,” he stated.

Mr Adjei said Oasis would, however, continue to stick to this segment of the economy through continuous investments. He pointed out that the fund would prioritise measurable social and developmental impacts alongside financial returns.

“As the fund manager, Oasis Capital integrates environmental, social and governance (ESG) considerations into its investment decisions. “This commitment extends to a focus on gender lens investing, actively seeking opportunities to promote gender equality and empowering women-led businesses,” he said.

Ebankese Venture Fund

This OAF II builds on the established impactful track record of Oasis Capital Ghana. The firm’s previous venture, the Ebankese Venture Fund (EVF), was a $11 million fund dedicated to supporting Small and Medium Enterprises (SMEs) in Ghana.

Following that success, Oasis Africa Fund I (OAF I) raised $50.5 million and invested in SMEs across Ghana and Cote d’Ivoire.  Both EVF and OAF I have been fully invested, deploying capital to a total of 21 businesses across various sectors.

Different financing models

The Chairman of the launch, Albert Essien, said the private sector was the engine of growth and comprised many kinds of business enterprises- small, large, multinational, startups, early-stage businesses, mature companies and high growth companies, among others.

He said all these business entities required different kinds of financing models —quantity, tenure, pricing — in order to thrive. “As a banker I operated one model, and until recently, even as recently as the last 15 years, there were very few alternate models.

“Slowly and surely, new models have entered the market, with one in particular drawing much deserved attention for its unique ability to support newer and younger high potential businesses to growth and maturity,” he stated.

Mr Essien said lately there had been an increase in the number of firms that offered this model of financing in the market, and he was, therefore, excited that Oasis Capital which was one of the pioneer in private equity practices, was still thriving, and had now raised its third fund.

“Today, not only have they raised $33.3 million in the first close of their fund, but they have also been able to raise this all from the Ghanaian market.

“In prior funds, they were able to attract funding from the Development Finance Institutions who have done a yeoman’s job in supporting this industry in Africa per their mandate,” he said.

Partnership with DBG

For his part, the Deputy Chief Executive Officer of DBG, Michael Mensah-Baah, said Oasis Capital had consistently demonstrated resilience and a steadfast vision to become the preferred partner for both investors and SMEs, aiming to unlock the region’s vast growth potential.

He said the DBG was partnering Oasis Capital to operationalise its Equity Fund of Funds Product. “This partnership would be the very first Private Equity Investment that DBG has made since its establishment three years ago.

“In addition to long-term Debt, DBG by this partnership has added to its financing instruments an equity finance product,” Mr Mensah-Baah stated. He said this would be a fund of funds product designed specifically to support Venture Capital and Private Equity firms such as Oasis Capital.

Returning Oasis Capital investors

Also speaking at the launch, the General Manager of VCTF, Percival Ofori Ampomah, said: “Oasis Capital continues to play a crucial role in bridging the financing gap for SMEs, providing not just capital but also valuable support and guidance to help businesses thrive.

“VCTF is proud to be a returning investor in this third fund with Oasis Capital. Our continued partnership reflects our confidence in their ability to deliver strong returns while making a meaningful difference in the lives of entrepreneurs and communities,” he added.

Growing capital market

The Deputy Director-General of the Securities and Exchange Commission (SEC), Paul Ababio, said the SEC would continue to put in place measures to grow Ghana’s capital market and ensure that it was strong, robust, attractive and fit for purpose.

He said the 10-year Capital Market Master Plan, which was launched three years ago, provided a blueprint to develop the market. Mr Ababio noted that at the heart of the plan was the diversification of products on the market and expansion of investor base.

The SEC Deputy Director-General commended Oasis for the role it was playing to help deepen the country’s capital market.

The Ghanaian government has directed pension and insurance funds to allocate at least 5% of their assets under management (AUM) to venture capital (VC) and private equity (PE) firms by 2026, in a bid to stimulate long-term financing for small and medium-sized enterprises (SMEs) and high-growth sectors.

The move, announced at the launch of the Ghana Venture Capital and Private Equity Compact, signals a strategic shift towards alternative investments as a means of driving economic transformation. Currently, only 0.58% of pension assets are invested in alternative funds, despite regulators permitting allocations of up to 25%.

Speaking at the event, Fredrick Asiamah, a senior official from Ghana’s Ministry of Finance, emphasized the government’s commitment to fostering a robust VC ecosystem, which it views as essential for achieving development goals under the African Continental Free Trade Agreement (AfCFTA).

“The Compact lays the foundation for how alternative investments should shape Ghana’s financial future,” Asiamah said, reading a speech on behalf of Finance Minister Dr. Cassiel Ato Forson. “Venture capital offers not just funding but expertise and innovation support — something traditional banks, with their rigid collateral requirements, have struggled to provide.”

The policy aligns with Ghana’s ambition to replicate the German Mittelstand model, where a network of well-capitalized SMEs forms the backbone of industrial growth. However, access to long-term financing has been a persistent hurdle, with banks often reluctant to lend to smaller businesses.

Unlocking Capital for Startups

Under the new directive, pension and insurance funds — which collectively manage billions of cedis — will be required to gradually increase their exposure to VC and PE. If fully implemented, this could unlock significant capital for startups and SMEs in sectors such as fintech, agribusiness, and renewable energy.

The push for alternative financing is already evident in some state-backed initiatives. The Minerals Income Investment Fund (MIIF), which manages Ghana’s mineral royalties, has been actively investing in SMEs that support the mining value chain.

Through Injaro Ghana Venture Capital Limited (IGVCF), MIIF has deployed capital into companies such as:

• Zeepay Ghana Limited ($2 million in 2023), a fintech firm facilitating cross-border remittances for mining firms.
• Kofa Technologies, a green energy startup developing lithium-based batteries — a strategic move following Ghana’s recent lithium discoveries.
• DDP Outdoor Limited, an advertising agency servicing mining companies.

“These investments are designed to yield strong returns for Ghanaians, who are the ultimate shareholders,” said Justina Nelson, MIIF’s Acting CEO.

While the policy has been welcomed by entrepreneurs, some analysts caution that pension funds may remain risk-averse without stronger incentives. Additionally, the success of the initiative hinges on fund managers’ ability to identify viable VC and PE opportunities.

Asiamah urged greater collaboration between the government and private sector, calling on fund managers and entrepreneurs to engage with the Finance Ministry as “partners in national development.”

“The creative juices of our entrepreneurs need the right financial support, knowledge transfer, and tools to thrive,” he said. “The Compact offers a path for Ghana’s development through impactful and innovative funding.”

If effectively executed, Ghana’s VC and PE push could position the country as a hub for startup investment in West Africa. However, much will depend on regulatory follow-through, investor confidence, and the ability of fund managers to balance risk with returns.

For now, the government’s message is clear: alternative financing is no longer optional — it’s a strategic imperative.