Ghana Economic Transformation Project (GETP)
The Ghana Economic Transformation Project (GETP) is a comprehensive national initiative aimed at diversifying Ghana’s economy and enhancing competitiveness by driving private capital and firm growth in non-resource base sectors. VCTF plays a strategic role in the implementation of GETP in accelerating entrepreneurship and small and medium enterprises (SMEs) growth. The initiative among other things is designed to enhance access to fi nance for small and medium enterprises (SMEs) and enabling innovation in non-resource base sectors addressing specifically the challenges in the SME ecosystem. Through targeted investments and partnerships, VCTF contributes to achieving GETP’s objectives of creating jobs, boosting productivity, and driving inclusive economic growth. By aligning it’s efforts with GETP, VCTF ensures that Ghanaian businesses are empowered to thrive in an increasingly competitive global market, driving long-term economic transformation for the nation’s non-resource base sectors.
PROJECTS UNDER GETP
The Fund Manager Development Program (FMDP) and the VC Analyst Program (VCAP) aim to strengthen the local investment ecosystem by developing skilled fund managers and equipping young graduates with vital venture capital and private equity expertise.
Fund Manager Development Program (FMDP)
The FMDP is an essential initiative designed to build the next generation of skilled fund managers, ensuring a sustainable and robust venture capital and private equity ecosystem in Ghana.
VC Analyst Program (VCAP)
The VC Analyst Program (VCAP) is a transformative initiative designed to equip young graduates with foundational skills and insights into the venture capital and private equity (VC/PE) ecosystem.
FUNDS UNDER GETP
The Trust Fund would be benefiting from a $40 million capitalisation under the World Bank’s Ghana Economic Transformation Program*, to provide seed and venture capital to SMEs through the establishment of two funds, ie. Startup Catalyst Fund & Strategic Industries Fund, for co-investments in startups, SMEs with growth potential and strategic industries
The Startup Catalyst (SC) Fund, which is originally a $20 million fund, will focus on promoting seed (startup) and very early stage funding to startups and SMEs with growth potential.
The Start-up Catalytic Fund (SCF) will be structured to play an anchor role and also warehousing of investments from 1 – 3 years, and later converted into funds when the fund management team is able to secure a second investor. It would be sector agnostic, however, new innovations in areas that support economic transformation shall be prioritized.
In terms of expectation, target return is expected to be between 5%-11% IRR with associated social impact focusing on job creation, industry income growth, livelihood support, women and youth empowerment and tax revenue generation to government.
The $20 million Strategic Industries (SI)** Fund will invest in close ended funds into industries considered strategic to the economic development of Ghana. Actual investment size will depend on the number of applicants that qualify for investment awards.
The target return is expected to be between 10% IRR with associated social impact not limited to job creation, industry income growth, livelihood support and tax revenue generation. The Fund will aim to invest in experienced fund managers with proven track record with structured terms to allow the funds to reach the desired small and medium enterprises with ticket sizes within the range of 500K – 1M.
The SI Fund will be positioned to make investments with focus on industries considered strategic to the economic tansformation of Ghana.
NOTE
* The number of jobs to be created from these funds’ investments is expected to be 210,000.
** The fund together with other participatory LPs will commit to close ended funds and GPs with experience and expertise in selected sectors and more importantly impact return expectations in making investment decisions.