The Ghana Venture Capital and Private Equity Association (GVCA) has held its maiden conference in Accra. The conference was a platform to illuminate private equity as a catalyst for the recovery of Ghana’s economy. Capital owners – including pension trustees, insurance companies, asset managers as well as members of the association – explored the full spectrum of private capital models.
Speaking on the sidelines of the conference, Matthew Boadi Adjei, Board Chair of the GVCA and CEO of Oasis Capital, emphasised the potential of private equity in providing patient and long-term capital to SMEs in Ghana. With his extensive experience in private equity, he notes that “private equity can help SMEs set up proper management structures and governance, navigate pervasive risks, and provide sustainable jobs, while intentionally pursuing a double bottom line – providing returns for investors and fostering sustainable job creation”.
“Despite the economic challenges faced by the country, private equity can provide an alternative option for investment, leading to inclusive and innovative solutions to navigate the storm,” Mr. Adjei added.
Hamdiya Ismaila, General Manager of Venture Capital Trust Fund and a member of the GVCA, also stated: “The GVCA’s goal for 2023 is to build the capacity of emerging managers to ensure that there are enough managers to mobilise and invest capital, supporting SMEs that create jobs and livelihoods for Ghanaians. The fund is looking to deploy a commitment of about GH¢200million toward this goal”.
Members of the association called for the implementation of a Limited Partnership Act that would support the development of the private equity/venture capital industry, which is currently limited under the Companies Act.
On her part, Mirabelle Moreaux, Partner at Injaro Investments Limited and a member of GVCA, alluded that investor comfort with regulations and trends is critical for attracting capital into Ghana’s private equity industry. She said the GVCA conference is 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. “It is our firm belief that at the end of the conference, members will walk away with innovative financial solutions for small and medium enterprises. These solutions will provide the government with additional taxes, the investors with financial and social returns, and ultimately aid in the development of Ghana’s real economy.”
The two-day GCVA conference 2023 brought together nearly 200 members from across Africa and was under the theme ‘Leveraging Private Equity for Ghana’s Economic Recovery’.
The 2023 conference featured expert panel discussions, PE/VC case studies, project launches, research paper presentations, training sessions and deal room sessions. Two panel sessions explored ‘how private equity fund managers create value for investors’ and ‘the role of domestic institutional investors in building a resilient economy’. Other discussions also focused on alternative models for deploying and measuring the impact of private capital in Ghana.
