World bank to commit $40 million to Venture Capital Fund
The World Bank has disclosed that it is committing some $40 million into the Venture Capital Trust Fund through the National Development Bank.
This move is for its operations and on-lending to the private sector.
The money is expected to be made available before the end of the month and it is expected boost the capital capacity of the Fund to enable it strengthen its core mandate of providing support for small and medium enterprises.
Swearing in the Board of the Fund, Minister of Finance, Ken Ofori-Atta, said the World Bank facility will complement other government initiatives aimed at making the Venture Capital Trust Fund a world class state agency.
“With this $40 million through our resources from the World Bank, they should be able to leverage that. But as I mention, the visible hands of government will always be there to complement the support.”
“I think lessons have been learnt from the histories of the old board and this is the right time for such funds to support their operations because prosecution is ongoing and other culprits of the former administration are been chased” he said.
Meanwhile, former Managing Director of the Ghana Stock Exchange, Kofi Yamoah, has been sworn in as the Board Chairman of the Venture Capital Trust Fund.
He will be leading the team to ensure that the Fund plays a critical role in government’s quest to enhance investment for SMEs and make the country a financial sector hub.
Other members of the board include Yaw Owusu-Brempong who also doubles as the Chief Executive, Dr. John A. Kumah, a deputy Minister for Finance and Kosi Yankey-Ayeh, Chief Executive of the Ghana Enterprises Agency. Others are Antonio Kisseih, Mabel Nana Nyarkoa Porbley, Brian Frimpong and Efua Appenteng
The Venture Capital Trust Fund (VCTF) was established by Venture Capital Trust Fund ACT, 2004, (ACT 680) to provide financing to Small and Medium Enterprises (SMEs).
Venture Capital Trust Fund is to develop a Venture Capital Industry in Ghana. This, the Trust Fund has done through joint ventures with partners from varied sectors with interest in the VC/PE Ecospace of Ghana, leveraging in excess of $77million dollars in investments.