Latest news with #GVCA
Zawya
30-04-2025
- Business
- Zawya
Regional Private Equity, Securities, and Pensions Industry Leaders sign compact to mobilize domestic capital
Accra, Lagos – 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. About Ghana Venture Capital & Private Equity Association: Founded in 2021, the Ghana Venture Capital Association (GVCA) is the foremost voice for venture capital and private equity in Ghana, as well as a partner to the African Private Capital Association (AVCA). GVCA acts as a key connector within Ghana's private investment ecosystem, linking asset allocators, institutional investors, fund managers, portfolio companies, advisors, and service providers. Its growing membership consists of firms, including venture capital and private equity companies, institutional investors, and professional services entities. GVCA advocates on behalf of its members to influential stakeholders, including government agencies, regulators, media, and other relevant organizations.
Business Insider
29-04-2025
- Business
- Business Insider
America first vs Africa: What's at stake for AGOA trade deal
On January 20, President Donald Trump shocked the international community by announcing a sweeping freeze on USAID's $43 billion annual budget. While the shockwaves rippled globally, nowhere were the tremors felt more acutely than across Africa, a continent long reliant on American development assistance and preferential trade programs. Weeks later, Trump escalated tensions by imposing reciprocal tariffs on several African countries, including Lesotho, which faced a 50% tariff, a move that could severely impact its cost-sensitive apparel exports. The pause has since been lifted, following intense diplomatic pressure and public backlash. However, the episode revealed just how precarious Africa's trade and aid relationship with the United States has become. This protectionist shift now casts a long shadow over one of the continent's economic lifelines, the African Growth and Opportunity Act (AGOA). A trade lifeline under threat The African Growth and Opportunity Act (AGOA), launched back in 2000, gives eligible sub-Saharan African countries duty-free access to the U.S. for over 1,800 products, on top of 5,000 already covered by a separate trade program called the Generalized System of Preferences (GSP). The idea was to boost trade, attract investment, and support economic growth in Africa, while also helping the U.S. maintain some soft power and influence on the continent. Some sectors took off under AGOA, especially apparel and autos. Within five years of the law being passed, African clothing exports to the U.S. jumped by 150%. Countries like Kenya, Lesotho, and Mauritius saw new factories pop up and jobs created. For example, Lesotho's textile industry, which accounts for 16% of its GDP and employs tens of thousands, mainly women, is almost entirely dependent on AGOA. Today, more than 80% of the country's exports are destined for the U.S. market. So any pause or disruption to the program would hit the economy hard. " For countries that used AGOA as a foundation for industrial policy, the risks are profound," Amma Gyampo, CEO of the Ghana Venture Capital and Private Equity Association (GVCA), told Business Insider Africa. However, some analysts say the program's benefits are overstated. According to Capital Economics, AGOA exports made up just 0.5% of sub-Saharan Africa's GDP in 2023. Nigeria and South Africa, two of the biggest users, only exported around 1% of GDP's worth to the U.S. under AGOA last year. AGOA trade peaked in 2008 when U.S. imports from African countries hit $82 billion. By 2024, that number had dropped to $29.1 billion, AGOA's website shows. Now, the AGOA legislation, which has been renewed twice since its inception, is set to expire in September 2025. African leaders are advocating for a 10-year extension, but the Trump administration's shift toward economic nationalism makes the renewal uncertain. Cost of walking away from AGOA On the cost side, AGOA currently costs the United States about $250 million per year in foregone tariffs. However, pulling the plug on the program isn't as straightforward as it might seem. The U.S. has traditionally held strong economic sway across Africa's 54 countries, using trade and investment as tools to advance its strategic interests. Africa's growing importance to Washington isn't just about diplomacy, it's also about resources. In 2023 alone, the U.S. imported $7.3 billion worth of crude petroleum and $4.7 billion in precious metals from sub-Saharan Africa, a sign of the region's value in global supply chains. If AGOA is allowed to lapse, it could slowly erode U.S. geopolitical influence in Africa, at a time when China and Russia are deepening their footholds, and Gulf states are emerging as powerful new players. "The U.S.' moves in recent times have been great for Beijing. We've seen some BRICS players offering tariff-free wheat to AGOA-vulnerable nations like Nigeria, swapping trade for UN votes. Venture firm Partech reports a 40% surge in Chinese VC deals in African health tech this year, exploiting the U.S. uncertainty," Gyampo said. Africa's bargaining chips Despite the uncertainties, Africa holds strong bargaining chips. The continent boasts a youthful population, booming creative industries, and abundant critical minerals essential for the global energy transition. According to Gyampo, these assets are in high demand globally, yet Africa has historically failed to fully capitalize on them. " it's a good moment to renegotiate trade deals in Africa's interest, based on what Africa has to offer the world," she said. There are growing calls for AGOA's renewal to include technology transfer clauses to build local manufacturing and skills capacity across the continent. Alice Usanase, former EMEA lead at AFC, pointed out a major gap in the current framework, " Digital services Africa's tech sector is growing at 10.8% annually, but AGOA had no provision for software, fintech, or digital content. Future frameworks must include data governance rules, IP protections, and cloud infrastructure financing." Amma Gyampo echoed that view, saying "Venture capital investors are keen on the creative and tech sectors as well. We need to look at how we emulate what India has done in Tech and leverage Africa's youth talent to boost our contributions to the global tech and business outsourcing sectors for example." Rethinking regional AfCTA trade Intra-African trade among the continent's 54 countries has historically remained low. While the African Continental Free Trade Area (AfCFTA) was established to unlock vast economic potential, its impact so far has been limited. Despite offering access to a combined market of 1.4 billion people and a total GDP of $3.4 trillion, the agreement's promise remains largely underutilized. Gyampo noted that in the venture capital and small business sectors, there's a strong push for businesses to pivot toward AfCFTA-driven regional trade. "There is a phrase I hear a lot nowadays, that 'AfCFTA isn't Plan B, it's Plan A". We need to diversify everything and reduce our reliance on any one market or trading partner," Gymanpo noted. Usanese added that Africa must strengthen its trade diplomacy with emerging markets like India, Brazil, Southeast Asia, and the Gulf states. " These partners are offering co-investment and market access without the heavy conditionalities that often characterize North-South relations," she said.
Zawya
16-04-2025
- Business
- Zawya
The Ghana Venture Capital Association to host annual conference
Accra, Republic of Ghana – The Ghana Venture Capital & Private Equity Association (GVCA) is proud to announce the upcoming "GVCA 2025 Conference," which will take place on April 24-25, 2025, at the Kempinski Hotel Gold Coast City in Accra. The Conference's theme is 'Catalysts for Economic Growth: Domestic Capital Mobilization in an Evolving Investment Landscape' and is expected to attract over 300 institutional investment stakeholders from across Africa. In line with the Association's mission to promote entrepreneurial success in the real economy and stimulate private sector development financing, the Conference will bring together venture and private equity industry leaders to shape a future driven by private capital in Ghana and Africa. The GVCA 2025 Conference will: Create opportunities for key stakeholders to build relationships, share knowledge and expertise, and explore new investment opportunities Engage in discussions and brainstorming sessions focused on local capital mobilization policy and regulations to drive regional trade, investment and economic growth Connect Ghanaian and African venture capital and private equity firms through B2B meetings Showcase the substantial contributions of the GVCA to the development of the venture capital and private equity industry in Ghana and Africa The transformative event will bring together government officials, policymakers, global investment leaders, CEOs from both local and international companies, representatives from multilateral and financial institutions, chambers of commerce, industry business associations, and entrepreneurs. The Conference will also facilitate sideline meetings that allow member institutions, growth-stage businesses, and industry stakeholders to establish valuable connections. The Conference will also provide participants the opportunity to devise solutions to the current changes in global trade due to supply chain challenges, trade tariff hikes, and political and security crises. Commenting on the GVCA Conference, Amma Gyampo, the Chief Executive Officer of GVCA, stated, 'The GVCA 2025 Conference will provide an excellent opportunity to assess the successes, opportunities, and challenges facing the venture capital and private equity sectors in Ghana. As the economy begins to recover, it is crucial to engage all stakeholders from both the public and private sectors to support this recovery and promote the inclusive growth we aim to achieve. When there is a more accommodating investment framework, private capital infrastructure and business environment, the patient capital, capacity building and hand-holding our industry offers as an option to growing businesses, acts as a catalyst for economic development. The GVCA conference will mark the beginning of this domestic capital mobilization effort.' Attendees may engage in policy discussions, panel talks, and product exhibitions specifically designed for small and medium-sized enterprises (SMEs). Prominent speakers will include influential thinker Bright Simons, astute investors Dr. Sangu Delle, Jerry Parkes, and Christian Ekpo, venture capital and finance expert Hamdiya Ismaila, as well as renowned legal expert Nana Ama Botchway, alongside GVCA CEO Amma Gyampo. These speakers will share their success stories, experiences, and best practices to promote investment and trade opportunities in Ghana and other African markets. For further information, please refer to the event's website ( About Ghana Venture Capital & Private Equity Association: Founded in 2021, the Ghana Venture Capital Association (GVCA) is the foremost voice for venture capital and private equity in Ghana. GVCA acts as a key connector within Ghana's investment ecosystem, linking institutional investors, fund managers, portfolio companies, advisors, and service providers. Our growing membership consists of firms, including venture capital and private equity companies, institutional investors, and professional services entities. We advocate on behalf of our members to influential stakeholders, including government agencies, media, and other relevant organizations. GVCA Contact: LinkedIn: GVCA info@ Media Contact: Gilles Ametepe Head, Innovation & French Communications Djembe Consultants Gilles@
