The Ghana Venture Capital & Private Equity Association (GVCA), one of Africa’s foremost VC industry associations, has demonstrated its commitment to fostering domestic and regional capital mobilization to enhance economic growth and protect the continent against external shocks. The association’s approach, consistent with national and regional policies to encourage Africans to invest in Africa, was projected at its recently held GVCA Conference in Accra.
The decisive demonstration of momentum for domestic capital mobilization and inclusive investing saw key players from Africa’s private equity and pensions industries come together to launch an industry-wide ‘Compact’ championing local institutional asset allocations to venture capital and private equity. The inaugural set of signatories, including gender lens investing and regulatory leaders at the conference, featured advisors, fund managers, and Funds of Funds such as Deloitte, EY, KPMG, Aruwa Capital, Oasis Capital, Savannah Impact Advisory, and the Venture Capital Trust Fund, as well as influential allocators, ecosystem builders, and regulators like the Securities and Exchange Commission, National Pensions Regulatory Authority, Impact Investing Ghana, and the Ashesi University Endowment Fund. This demonstrates much-needed regulatory support for public and private sector efforts to strengthen local investment in key economic sectors.
Speaking at the conference, Amma Gyampo, CEO of GVCA, stated, “Africa’s pension and insurance sectors are sitting on the opportunity of a generation, and as stakeholders, we are here to lead the ecosystem into action. Diversification into high-growth, well-managed local private equity funds is smart risk management and essential for financing strong companies that create stable jobs, provide good salaries, and nurture prosperity that will, in turn, grow our pension assets from within. Domiciling fund vehicles in local currencies is critical to anchoring that growth domestically, avoiding value erosion, and building a virtuous cycle of local resilience and inclusion, across African markets.”
The GVCA Conference highlighted the urgent need for stakeholders to invest in ecosystem-building activities such as training Limited Partners, developing the financial infrastructure, nurturing public interest, and attracting women and young talent. These initiatives should be pursued alongside advocacy for policy and regulatory reforms to reassure asset allocators in ways that shift 5% of their allocations to alternative assets like venture capital and private equity by 2026, unlocking billions in local African institutional funding for private sector development.
As institutional investors seek new strategies to meet their members’ evolving needs, the Compact represents a bold industry commitment that sets the stage for venture-backed companies to become a driving force in job creation and economic security across African markets. The GVCA’s initiative signals that the future of African private equity will be more dynamic, inclusive, intentional, and homegrown by African asset allocators.
The Compact, forged at a critical inflection point for African private equity, underscores a wake-up call for asset allocators: it is time to diversify to fuel sustainable growth in the real economy with a renewed win-win mindset.
