Look beyond government securities, GVCA tells pension funds

Ghana's private capital ecosystem is gaining attention as institutional investors seek opportunities beyond government securities. This shift is fostering collaboration between pension funds, private equity firms, venture capital managers, and other market participants. The Ghana Venture Capital and Private Equity Association (GVCA) organized a Matchmaking Session to educate pension funds about alternative investments and encourage capital deployment in the real economy.

Amma Gyampo, GVCA CEO, emphasized the importance of diversification, noting that pension funds traditionally invest in government securities, but diversification is crucial due to changing economic conditions. The session aimed to help institutional investors understand private equity and venture capital's potential, including their role in creating jobs and strengthening local industries.

Representatives from various firms shared their investment strategies and discussed financing gaps, particularly for growth-stage businesses. Key sectors of interest included agribusiness, healthcare, manufacturing, digital services, hospitality, and real estate. While the move to private markets presents considerations for pension funds, such as liquidity and risk, industry participants stressed the broader economic impact of private capital investments.

The goal is to increase domestic capital flow into Ghanaian businesses to foster growth, job creation, and long-term economic development.