VCTF Allocates GH¢35 Million to Empower Women-Led Businesses

The Venture Capital Trust Fund (VCTF) has committed GH¢35 million to the Zinari Women’s Enterprise Fund (Z-WEF), the first fund in Ghana dedicated to supporting women-led businesses.

This significant investment aims to empower small and medium-sized enterprises (SMEs) led by women, with a focus on driving growth in key sectors such as food, agriculture, manufacturing, and consumer goods, while advancing gender equity and economic development in the country.

The commitment was made official at a signing ceremony held at VCTF’s Accra offices, where key stakeholders, including the Board Chairman of VCTF and the Director of the Ghana Enterprises Transformation Project (GETP), gathered to mark the occasion.

With this GH¢35 million commitment, Z-WEF has successfully reached its first close, and efforts continue to raise funds toward its overall target of GH¢120 million.

Percival Ofori Ampomah, General Manager of VCTF, expressed the organization’s dedication to promoting gender equity and economic inclusion.

He described the investment as a “transformative step” that will not only foster financial inclusion but also enable women-led businesses to thrive, create jobs, and contribute to economic growth.

“The fund directly addresses the gender-based financial disparities in Ghana, where many women entrepreneurs struggle to access capital to grow their businesses,” Ofori Ampomah stated.

Barbara Ghansah, Lead Partner at Zinari Capital, highlighted the importance of the Z-WEF, noting the persistent challenges women-led SMEs face in securing funding. “This fund will change the narrative for Ghanaian women in business, providing crucial capital to help women entrepreneurs overcome financial barriers and succeed across various sectors,” she said.

The financing gap for women entrepreneurs is a critical issue in Ghana and sub-Saharan Africa, where women constitute a significant portion of business owners yet face substantial underfunding.

The financing gap for women in Africa is estimated to be around US$42 billion, demonstrating the magnitude of the challenge. In Ghana, where women are at the forefront of entrepreneurial activity, Z-WEF’s focused approach seeks to address this gap by funding businesses where women play vital roles as owners, senior managers, or in the value chain.

Z-WEF is structured as a 10-year closed-ended fund, with a target gross internal rate of return (IRR) of 20 percent for investors. The fund plans to finance up to 20 SMEs, creating both direct and indirect employment opportunities. Individual investments will range from GH¢100,000 to 10 percent of the total fund size, aligning with the fund’s goals of promoting economic growth and gender equity.

The fund’s impact will be tracked through key metrics such as improved livelihoods, increased tax contributions from supported businesses, and enhanced support for women and youth.

As Ghana’s first fund focused on women, Z-WEF represents a milestone in gender-targeted investments within the country’s venture capital ecosystem. With VCTF’s backing, this initiative is expected to attract more investments in women-led businesses, potentially reshaping Ghana’s investment landscape.

VCTF Board Chair, Kofi S. Yamoah, emphasized the transformative potential of the fund. “This initiative has the capacity to redefine investment in Ghana by positioning women as central drivers of economic growth and social progress,” he said.

With its GH¢35 million commitment, VCTF is paving the way for sustained economic and social progress, ensuring that women-led businesses in Ghana have the resources and support needed to succeed and make a lasting impact.