Ghana VC Association Launches Initative to Boost Local Investments

Points clés à retenir

Africa’s institutional investors—especially pension and insurance funds—hold billions in underutilized capital that could be deployed to drive private sector growth. Yet local allocations to venture capital and private equity remain low, due to perceived risks, regulatory barriers, and limited fund manager track records. The GVCA Compact is a coordinated effort to reverse that trend by building trust, creating awareness, and fostering regulatory alignment. It echoes similar calls across the continent to mobilize domestic capital for long-term investment in African enterprises, reducing dependence on foreign sources. Local currency funding is especially important in frontier markets where FX volatility often erodes returns. By backing funds domiciled in domestic markets, investors can retain value locally while fueling sectors that create jobs and build wealth. If successful, the Compact could serve as a model for other African markets, driving a regional shift toward sustainable, locally anchored capital markets.