The Venture Capital Trust Fund (VCTF) has disclosed a partnership with the 24-Hour Economy Secretariat to provide specialised funding for Ghanaian small and medium enterprises (SMEs) to spur all-around economic activities and create jobs.
This comes on the back of the signing of a Memorandum of Understanding (MoU) with the 24-hour Secretariat, on Monday, March 3, paving the way for a dedicated SME fund to support businesses that intend to operate around the clock.
Mr Michael Abbey, the Chief Executive Officer of VCTF, made this disclosure during a field trip to two portfolio companies of the Fund, receiving financial support from Impact Capital Advisors, in Accra and the Eastern Region, on Tuesday, March 3.
Mr Abbey noted the initiative would allow portfolio companies to tap into incentives and dedicated financial assistance to expand operations, with integration opportunities across sectors like solar energy for a reliable power supply.
He said the 24-hour economy SME fund would be fully structured and accessible by the end of the year, with criteria and processes to be publicly announced as discussions with the Secretariat had already identified potential deals.
“The MoU is geared towards establishing a Fund that will be dedicated to supporting businesses that intend to run 24/7, underscoring our commitment to investing in SMEs and supporting Ghana’s economic growth, stability and resilience,” Mr Abbey said.
“Patient capital is crucial for building robust businesses. With the 24-hour economy initiative, we are positioning Ghanaian SMEs to compete, grow, and sustain livelihoods in a market that has long been dominated by foreign investors,” he stated.
During the recent portfolio performance review at Riosap Farms Limited, Mr Abbey expressed excitement about the growth of the integrated agribusiness, which, he said, reflected the impact of patient capital by VCTF.
He explained that the field visit was to have firsthand insight into the progress, challenges, and opportunities of their portfolio companies, underscoring VCTF’s commitment to transparency, governance, and accountability.
“Our mission is not only about financial returns but also about fostering sustainable SMEs that form the backbone of Ghana’s economy. By combining capital support with governance structures and performance monitoring, VCTF ensures that its investments contribute to long-term economic resilience,” the CEO said.
Mr Richard Osei Appiah, the Chief Executive, Riosap, told the media that financing support from VCTF had made them expand from under ten employees to nearly forty, boosted rice yields from 1.8 to over three tons per hectare, and constructed a million-dollar warehouse.
“The assistance from VCTF was crucial in acquiring equipment for rice farming and processing. With this support, we have established a rice mill capable of producing 20 tonnes per day, significantly expanding our capacity and introducing facilities that were previously not available,” he said.
Mr Appiah expressed Riosap’s enthusiasm to roll out the 24-hour economy initiative, expanding operations, encouraging and employing youth in agribusiness, and boosting production, aligning with VCTF’s goals to drive economic growth and job creation.
He recommended the Fund to other entrepreneurs, highlighting its transformative influence in strengthening production capacity, employment, sustainability and the overall success of the company.
