Ghana’s private capital ecosystem is attracting growing interest as institutional investors explore opportunities beyond traditional investment instruments and seek to channel more capital into the productive sectors of the economy.

The development is prompting renewed engagement between pension funds, private equity firms, venture capital managers and other players in the markets and investment industry, with stakeholders highlighting the potential of private capital to support growth-stage businesses, create salaried jobs and deepen economic growth.

The discussions formed part of a Matchmaking Session organized by the Ghana Venture Capital and Private Equity Association (GVCA), which brought together institutional investors, fund managers and private equity industry representatives to exchange perspectives on opportunities within Ghana’s private markets.

Chief Executive Officer of the GVCA, Amma Gyampo, said the engagement was intended to help pension funds better understand alternative investment opportunities and consider how their capital could be deployed more effectively into the real economy.

“We are here to educate the pensions industry about the opportunity to diversify the way they invest.”

She said pension funds have traditionally been accustomed to investing in government securities, but changing economic conditions make diversification increasingly important.

“One of the areas of opportunity that has been missed and misunderstood is private equity and venture capital.”

According to Ms. Gyampo, the objective is to ensure that more domestic capital finds its way into businesses that can expand, create employment and contribute to economic growth.

“How do we invest our hard-earned cedis into the real economy to create more jobs, to create more salaried workers who then go on to contribute towards pensions, pay the taxes, and also see the money go round for the economy to grow?”

The session provided an opportunity for GVCA members, transaction advisors and investment professionals to present their strategic approaches to private capital investment and engage institutional investors on the role such financing can play in supporting growing, viable businesses across the economy.

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