Ghana is losing long-term investment capital to competing African markets due to the absence of a Limited Partnerships Act, a critical legal framework needed to support private equity and venture capital funds, the Chief Executive Officer of the Ghana Venture Capital and Private Equity Association (GVCA), Amma Gyampo, has disclosed.

Speaking to Joy Business, Ms Gyampo noted that the regulatory gap is pushing fund managers to domicile their investment vehicles outside Ghana, depriving the country of tax revenues, jobs and industry growth opportunities.

She said jurisdictions such as Mauritius, South Africa and Nigeria have gained an edge by offering clearer and more investor-friendly structures for private equity and venture capital activity.

“We are trying to build a strong private equity and venture capital industry in Ghana that aligns with established markets,” she said. “But the absence of a Limited Partnerships framework makes it difficult to domicile funds locally.”

Ms Gyampo explained that operating investment funds under the Companies Act does not reflect the structure required for private equity and venture capital, weakening Ghana’s competitiveness.

“As a result, most fund managers are forced to domicile outside the country. That means we lose potential tax revenues, jobs, and opportunities to build a strong local investment ecosystem,” she added.

She said the GVCA is working closely with the Office of the President, the Ministry of Finance and the Venture Capital Trust Fund to push for the passage of the Limited Partnerships Act.

“If the law is passed, Ghana can position itself as a hub for venture capital, private equity and long-term investments into the domestic private sector, instead of losing those funds to other jurisdictions,” she said.

Market watchers say the proposed legislation could play a key role in strengthening Ghana’s private capital ecosystem and attracting patient capital needed to support long-term economic growth.