The Ghana Venture Capital Trust Fund (VCTF), a government-backed private equity fund of fund vehicle, is set to sponsor a venture capital fund targeting youth-focused startups. The initiative aims to bolster the growth of innovative ventures led by young entrepreneurs.
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Currently open for applications from prospective fund managers, one of the requirements for candidates is to detail strategies for reaching a minimum fund size of GHS 100 million. The chosen fund manager will work closely with the VCTF to develop a strong business model, implement fundraising tactics, and manage daily operations, such as investment choices and regulatory adherence.
Youth-led startups in Ghana across various sectors are driving economic growth and social impact by creating jobs and addressing issues like unemployment and poverty. Companies such as Complete Farmer, Farmerline, Degas, and Agrocenta are using technology to improve farmer livelihoods. However, these entrepreneurs face obstacles like limited access to financing, high-interest rates on loans, and reliance on foreign investors for funding, emphasizing the need for local investment solutions.
The introduction of a local youth-focused venture fund holds promise for addressing these financing gaps and unlocking the full potential of youth-led SMEs. By providing tailored financial support and fostering an enabling ecosystem, such initiatives aim to fuel innovation, spur economic growth, and promote social inclusion and empowerment. With strategic interventions like the VCTF-sponsored fund, Ghana is poised to harness the entrepreneurial zeal of its youth and propel the nation toward sustainable development and prosperity.
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