Michael Abbey is the Chief Executive Officer of VCTF
The Venture Capital Trust Fund (VCTF) has thrown its support behind President John Dramani Mahama’s newly announced plan to establish a National Venture Capital Fund targeted at youth and women-led businesses, describing the initiative as a bold move to deepen entrepreneurial support and accelerate inclusive growth.
President Mahama made the announcement during the 2025 Kwahu Business Forum on April 19, where he said the proposed fund would help scale businesses that have often been locked out of traditional finance.
“We will launch a National Venture Capital Fund to support youth and women-led businesses and introduce regulatory reforms that encourage banks and financial institutions to lend to the productive sectors of the economy. “In all of this, financial inclusion will be at the heart of our agenda. No economy can grow if its people remain excluded from the formal financial system,” President Mahama said.
Michael Abbey, Chief Executive Officer of VCTF, welcomed the announcement, emphasizing the fund’s alignment with the president’s vision and the Fund’s two-decade-long experience supporting SMEs across Ghana.
Mr. Abbey said the creation of a national fund represents a significant policy shift that can unlock greater access to equity financing — a form of capital often more suitable for high-growth startups than traditional bank loans.
“At the Venture Capital Trust Fund, we have always understood that supporting small and medium enterprises is not just about providing capital; it’s about creating an ecosystem where long-term growth can thrive,” Mr. Abbey said at the same forum. “Unlike traditional lenders, we understand that growth takes time, and we are here to support businesses through that journey.”
He noted that many Ghanaian entrepreneurs, especially those in innovative or high-growth sectors, are constrained by collateral requirements and short-term loan obligations that come with debt financing. Venture capital, by contrast, allows firms to scale sustainably without immediate repayment pressure.
Since its establishment under the Venture Capital Trust Fund Act, VCTF has backed 14 venture funds and supported nearly 80 companies across sectors including agriculture, healthcare, education, fintech, and manufacturing.
According to Abbey, these investments have had a ripple effect: creating more than 28,000 jobs and attracting over GH¢ 2 billion in additional private investment, with every GH¢1 from VCTF leveraging GH¢ 6 from co-investors.
“These numbers are not just statistics; they represent real businesses, real jobs, and real impact on the ground,” he said, citing success stories such as Piper Pretty in the livestock sector, Vester Oil in agro-processing, and Zeepay in mobile financial services.
Mr. Abbey stressed that the Fund’s role goes beyond financing, highlighting VCTF’s focus on mentorship, capacity-building, and improving corporate governance among portfolio companies. This comprehensive support, he said, builds investor trust and ensures businesses are not just profitable but resilient and ethical.
He pointed to the Zinari Women’s Enterprise Fund, Ghana’s first gender-lens fund, as an example of VCTF’s commitment to sustainable development. Other impact-driven investments have supported sectors tied to the UN Sustainable Development Goals, including education, health, and decent work.
Looking ahead, VCTF says it remains focused on expanding Ghana’s venture capital ecosystem and working with partners to strengthen the regulatory and institutional environment for equity investing.
Mr. Abbey also called on policymakers to deepen reforms that enable long-term financing for SMEs. “To our policymakers and esteemed leaders, I call upon you to continue supporting a regulatory and financial ecosystem that empowers innovation, reduces barriers to access, and nurtures entrepreneurship,” he said.
He urged entrepreneurs to take advantage of venture capital as a strategic financing option. “We encourage you to reach out to our fund managers to explore innovative ways to scale your businesses sustainably,” he said.
With President Mahama’s proposed National Venture Capital Fund on the horizon, VCTF sees a renewed opportunity to broaden its impact and support a new generation of Ghanaian entrepreneurs building the future economy.
