New GVCA CEO Amma Gyampo discusses priorities: policy reform, unlocking local capital via diversification, and building capacity for Ghana’s SME growth.
Following her recent appointment as CEO of the Ghana Venture Capital and Private Equity Association (GVCA), Amma Gyampo brings two decades of global experience to the role.
We dive into the insights she shared with Technext about her vision, the challenges in Ghana’s funding landscape, and GVCA’s strategy moving forward.
Interviewer: Amma, congratulations on your appointment. You described this new role as a “culmination” of your work over the past decade. Could you elaborate on how your previous experiences have led you to this position at GVCA?
- Amma Gyampo: Thank you. Yes, I see it as bringing together years of effort focused on pooling resources, trying to unlock capital that might be trapped in lower-yield areas, and directing it towards opportunities with higher potential, particularly SME funding. It’s built on many relationships and engagements across the ecosystem, all aimed at tackling issues like the high cost of debt financing that businesses face here.
Interviewer: The article highlights your passion for this work over the last ten years. What specifically drives this passion, especially concerning supporting SMEs and improving the funding environment?
- Amma Gyampo: It stems from understanding the different parts of the ecosystem and seeing the clear need to improve how we fund our SMEs. For over a decade, I’ve been deeply involved in figuring out how we can make SME funding more accessible and effective, moving away from expensive debt models towards structures that genuinely support growth and job creation. It’s about making our collective goals a reality.
Interviewer: As the new CEO, what are your immediate priorities? The article mentions driving conversations around policy changes and investment structures.
- Amma Gyampo: A key priority is definitely to lead discussions on necessary policy adjustments and innovative investment structures that can maximize impact within Ghana’s context. This involves building the capacity of our local fund managers so they can effectively manage funds suited to our market needs and, crucially, unlock more local capital for SMEs.
Ghana Venture Capital and Private Equity Association (GVCA)
Interviewer: Collaboration seems to be a recurring theme. How important is fostering collaboration, both within Ghana’s ecosystem and with players across Africa?
- Amma Gyampo: Collaboration is central. GVCA aims to connect all the essential stakeholders – fund managers, investors, policymakers, regulators, advisors, law firms – to effectively mobilize capital. Beyond Ghana, we are actively collaborating with associations like the Africa Venture Capital Association (AVCA) and others regionally. It’s about building a stronger, more interconnected private capital landscape.
Interviewer: You identified regulation as a “notable barrier,” mentioning ceilings on what certain players can invest in. How does GVCA plan to address these regulatory challenges?
Amma Gyampo:We recognize that regulations limit how much some potential investors can participate. Our approach involves engaging with regulators and policymakers to understand these limitations thoroughly. The goal is to advocate for and help implement laws and frameworks that make it easier for local capital sources to invest in venture capital and private equity, ultimately reducing risk and increasing participation.
You referred to GVCA’s approach with institutional investors as a “game of diversification.” Could you explain this strategy, particularly regarding engaging entities like pension funds?
- Amma Gyampo: Exactly. We’re emphasizing to institutional investors, such as pension funds, that diversifying their portfolios to include private equity and venture capital is a sound investment strategy. Our role is to educate this audience about the asset class, encourage that diversification, and simultaneously work with policymakers to create an environment where such diversification is feasible and attractive.
Interviewer: The article mentioned a recent change in Ghana’s leadership. How does GVCA intend to engage with the government to advance its policy goals?
- Amma Gyampo: Engaging deeply with policymakers is crucial to understand the opportunities and remove bottlenecks. While we need to allow the government time to settle in, our ongoing priority is clear: work constructively to reduce policy barriers and harmonize the regulatory and legal frameworks needed for a thriving private capital market.
Interviewer: Ghana saw a funding peak in 2022, reaching $202 million. You attributed this partly to “pent-up demand capital” post-COVID. Could you expand on that and the subsequent challenges faced?
- Amma Gyampo: I believe 2022 saw a release of capital that had been held back due to the pandemic, leading to that significant boost in funding figures. However, this period also coincided with significant economic headwinds, particularly foreign exchange challenges, which negatively impacted our local market and highlighted its vulnerability to external shocks.
Interviewer: Given those external shocks and FX challenges you mentioned, what is the most critical step needed to protect Ghana’s ecosystem?
- Amma Gyampo: It reinforces the absolute importance of developing our local capital base. We need to reduce our vulnerability to these external factors. The key lies in successfully mobilizing capital from local institutional investors, creating a more resilient and self-sufficient funding environment for our SMEs.
Interviewer: Finally, looking ahead, what is the core objective GVCA is striving for under your leadership to shape Ghana’s private capital ecosystem?
- Amma Gyampo: Our overarching goal, as outlined by GVCA, remains to accelerate the growth and impact of the private capital sector, specifically for job creation and SME growth in Ghana. My leadership aims to steer this by fostering collaboration, advocating for enabling policies, building capacity, and ultimately unlocking the capital needed to fuel our nation’s entrepreneurs.
This article was originally written by David Afolayan and published on the TechNext24 and republished with permission.
