Funding of SMEs
The SME sector constitutes in excess of 90% of the economy of the country. The need to provide secured source of financing for this sector cannot be over emphasized. SMEs, if properly structured and capitalized have the potential to grow and spearhead accelerated growth of this economy into a middle income status.
Under the Venture Capital Trust Fund Act, 2004 (Act 680), a Small and Medium-Scale Enterprise (SME) is characterised as an industry, project undertaking or economic activity whose total asset base , excluding land and building does not exceed the cedi equivalent of US$1 million in value.
Unfortunately since there is a dearth of long term investment funds for SMEs (as a consequence of the banks and securities markets shying away from the high risk investments in these sectors), it has became imperative for the Government to set up a scheme that will provide long term funding for the high risk investment needs of the SME sector.
Such support to the business sector is in consonance with the recognition that the private sector is the engine of growth of the economy and the policy to promote and support them, is to engage the private sector as an equal partner to help government achieve the country’s developmental goals.
It is in this regard that the Venture Capital Trust Fund has formed partnership with financial and non-financial organisation for Small and Medium-Scale Enterprises(s) (SMEs) seeking to access funding under the trust Fund Act to apply directly to any of the Four (4) under-listed institutions:
Activity Venture Finance Co
6th Floor, GCB Towers
Kwame Nkrumah Circle
Adabraka – Accra
Fidelity Equity Fund II Ltd
18 Aviation Road
Airport Residential Area
Gold Venture Capital Limited
1st National Savings & Loans Building
Opp. Busy Internet – Accra
Bedrock Venture Capital Finance Co.
Ministries – Accra
The Basic Requirements for accessing the Funds include:
- A comprehensive Business Plan (your business Roadmap) with three (3) years projections
- Audited Financial Reports for past three years for existing business
- Tax Clearance Certificate
- Incorporation Papers (if applicable)
- Any other information that may be requested.