Companies benefiting from the Venture Capital Trust Fund are gradually being cut off the support by the Fund because of inadequate funding from government.

Venture Capital since 2012 has stopped financial support to most of its beneficiary companies. 

The Fund for the ten years since of operation has supported over 50 businesses with over GH¢47.4 million with plough back capital.

Vester Oil Mills is one of such beneficiaries feeling the brunt of the situation after seven years of doing business with the fund.

“The usual support they have been giving me, it is not a grant but loan, very flexible. We worked and we were paying dividends and I have been paying but out of nowhere they say they are not paying again”, Managing Director, Kwasi Nyamekye said.

It is a long-term investment because loans are not recalled in a matter of a year or two but after five and six years which makes it patient and less demanding.

He revealed plans to put up a semi-extraction plant against the Nigerian market which is an alternative to the falling Ghanaian market has been unsuccessful.

“That means expansion and increase employment. If things were okay I would need more hands but unfortunately as it is now, you can’t be employing whiles you are not making any returns”, he worriedly explained.

Zonal Head of Venture Capital, Emmanuel Osei Akuamoah, tells LUVBUSINESS recapitalising the Fund is requisite to address the challenge.

According to him, if there was a constant flow of funds every year like other counterparts like EDAIF; they would extend support to other companies with this alternative source of funding.

Venture Capital was funded with seed fund through the National Reconstruction Levy in 2006 but the levy has been repealed.

The budget of Venture Capital Trust Fund was disbursed with GH¢25 million for last five years.

According to authorities, that is what fund managers have been using for all its projects.

They are therefore calling on the government to either provide constant flow or alternatively allow venture capital to have partners that will bring in more money.