VCTF seals partnership with 24-Hour Economy Secretariat to boost SME financing

Venture Capital Trust Fund (VCTF) has signed a Memorandum of Understanding (MoU) with the 24-Hour Economy Secretariat to establish a dedicated financing vehicle for small and medium-sized enterprises (SMEs) seeking to operate on a 24-hour basis.

The agreement, first announced at the 2025 Kwahu Business Summit, was finalised on Monday, March 2, 2026, ahead of an executive site visit by VCTF’s leadership to portfolio companies in Accra. It marks a major institutional step toward mobilising structured private capital to support government’s 24-hour economy agenda.

The initiative forms a key part of Ghana’s broader strategy to boost industrial production, attract foreign direct investment, and expand formal employment.

Chief Executive of VCTF, Emmanuel Abbey, said the new fund is intended to provide long-term, risk-tolerant capital to businesses that conventional lenders are often unwilling to finance.

He explained that the facility would be tailored specifically for SMEs looking to run continuous operations, enabling them to undertake expansion projects and strengthen their operational capacity.

By mid-2025, VCTF had committed GH¢359.6 million to its network of venture funds, leveraging more than GH¢2 billion in additional private capital. According to the fund, every cedi invested has attracted GH¢5.58 from external sources. Portfolio companies have collectively paid nearly GH¢47 million in taxes, recorded 14 profitable exits, invested in 77 companies, and generated more than 28,000 jobs.

During the site visit, Abbey toured ESERB, a mattress manufacturing company in Tema established with VCTF-backed financing through Impact Capital Advisors (ICA). The company’s Chief Executive, Emmanuel Ewool, described the investment as transformative, noting that the business had no operational footprint prior to securing funding.

The capital injection enabled ESERB to acquire land, build a production facility, procure machinery, and recruit and train staff. The company has since obtained Ghana Standards Authority certification and is expanding its sales and distribution network in Accra, with informal export activity already recorded in Côte d’Ivoire.

However, Ewool identified erratic electricity supply as a key operational challenge. Although the company has procured a generator to mitigate disruptions, the cost of diesel-powered generation has increased overheads and reduced margins at a critical growth stage.

Government has acknowledged high energy costs as a structural barrier to industrial competitiveness. Plans are underway to reduce industrial electricity tariffs to between US$0.04 and US$0.07 per kilowatt-hour, down from the current US$0.13 to US$0.17 range. If implemented, the reduction would significantly lower operating costs for eligible firms.

Presidential Advisor on the 24-Hour Economy and Accelerated Export Development, Augustus Tannoh, recently identified energy costs as a major impediment to Ghana’s competitiveness, noting the need for reforms to attract industrial investment.

Abbey indicated that VCTF is also exploring renewable energy options within its portfolio, including collaboration with a solar installation company it supports, to help manufacturing firms manage electricity challenges.

In the agricultural sector, VCTF-backed RIOSAP Farms in Yilo Krobo has recorded notable growth. The integrated rice, cassava, and poultry business has increased rice yields from between 1 and 1.8 tonnes per hectare to between three and four tonnes per hectare. Its workforce has expanded from fewer than ten employees to nearly forty, supported in part by co-funding for a US$1 million warehouse facility.

RIOSAP’s Chief Executive, Richard Osei Appiah, credited VCTF’s investment with driving improvements in infrastructure, equipment, and overall production capacity, urging continued support to enable more businesses to benefit.

The Venture Capital Trust Fund operates as a government-backed fund of funds, investing in licensed Venture Capital Finance Companies, which in turn finance SMEs. The governance framework includes board representation and quarterly performance reporting to ensure accountability.

Abbey said the site visit reaffirmed his belief in the importance of patient capital—long-term financing that accommodates the growth cycles of early-stage enterprises—in building sustainable businesses.

He emphasised that such financing is critical to strengthening Ghana’s private sector and supporting the success of the 24-hour economy programme.