TLDR:
- Experts in the venture capital industry are calling for increased local participation in investment funds to promote economic growth and insulate businesses from global financial turbulence.
- Hannah Acquah, CEO of Ghana Venture Capital and Private Equity Association, emphasizes the importance of local institutional investors like pension houses and insurance companies in funding Ghanaian companies.
Experts in the venture capital and private equity industry are advocating for greater local participation in investment funds to promote economic growth and protect businesses from global financial instability. Hannah Acquah, CEO of the Ghana Venture Capital and Private Equity Association, highlights the importance of having local institutional investors, such as pension houses and insurance companies, participate in funding Ghanaian companies. This local participation helps mitigate the impact of currency fluctuations on businesses heavily reliant on foreign direct investments.
Currency fluctuations have put pressure on the cedi, with predictions of further depreciation against major currencies like the US dollar. To address this risk, experts like Acquah are urging local institutional investors to allocate funds to venture capital and private equity firms, creating a more resilient business environment. Alex Asiedu, board chair of Impact Investing Ghana, also emphasizes the need to bridge the gap between capital suppliers and businesses requiring financing, particularly in the private sector.
The call for increased local participation in venture capital and private equity investments aims to address challenges faced by the industry, including lack of information, capacity, and trust. By encouraging local institutional investors to partake in funding Ghanaian companies, experts believe businesses can better manage risks and navigate economic uncertainties, independent of foreign investments.
