Amma Gyampo, the CEO of the Ghana Venture Capital and Private Equity Association (GVCA), is leading the charge for domestic capital to take the lead in financing Ghana’s new 24-hour economy policy. With President John Mahama’s government gearing up for the official launch of this transformative agenda on July 2, the focus is shifting towards how to fund this ambitious vision.
The 24-hour economy policy aims to create round-the-clock operations by encouraging businesses and public institutions to operate in three continuous eight-hour shifts. This initiative is expected to boost productivity, create jobs, and propel Ghana towards becoming an export-led economy. However, such a monumental task requires significant capital to fund infrastructure upgrades, industrial expansion, operational scaling, ecosystem development, and talent enhancement.
While foreign direct investment may seem appealing, there is growing concern within Ghana’s private capital investment community about over-reliance on external funding. There is a fear that chasing foreign capital could lead to unfavorable concessions and sideline local investors, resulting in a 24-hour economy dominated by foreign interests.
In response to this, the GVCA is advocating for a strategic partnership between the government and Ghana’s private institutional investors. The association is promoting its “5% Pension Industry Compact,” which encourages local pension funds to allocate 5% of their assets to alternative investments like private equity and venture capital. This move is seen as a way to diversify pension portfolios, generate better returns, and inject vital capital into the local economy to support Ghanaian businesses essential for the success of the 24-hour economy.
At the recent Africa Impact Summit, Amma Gyampo emphasized the readiness of the private equity and venture capital industry to collaborate with the government to ensure that Ghanaians are the primary beneficiaries of the new economic policy. Gyampo highlighted the importance of unlocking and managing the potential of domestic private capital to fuel the 24-hour economy, rather than relying on expensive debt and international funding.
The 5% Pension Industry Compact could unleash over GHS 5 billion in domestic investment capital from Ghana’s pension funds. This injection would de-risk the landscape and attract additional co-investment from international development finance institutions and foundations dedicated to private sector growth.
As Ghana stands on the brink of this new chapter, it is crucial for the private sector to actively engage and advocate for domestic capital as the foundation of the 24-hour economy. By harnessing local resources, Ghana can create a truly Ghanaian success story that drives sustainable economic growth and development.
