Small and Medium Enterprises (SMEs) have been urged to prioritize corporate governance to attract the needed funding to expand their businesses.
According to the Chief Investment Officer at Stanlib Ghana, Kwabena Boamah, a proper corporate governance structure will strengthen their operations and allow businesses to cross generations.
He made the call at a Private Equity Dialogue in Accra organized by Stanlib Ghana, the leading asset manager.
The aim of the dialogue was to underscore the importance of Private Equity to Ghana economic development since majority of investors know very little about it.
It emerged that, about 60 percent of fund managers in Ghana prefer to invest funds in the financial services, manufacturing, estate development and Information and Communications Technology because there sectors have exhibited highest growth potential in the economy.
Getting top private-equity returns in Ghana depends on sustained work in finding and winning the best deals, useful and strategic management inputs, and inspired exits from the investments.
Raising Private Equity Funds in Ghana is often difficult, since local Private Equity firms are close to non-existent.
The relatively low level of financial development means that Ghanaian-owned fund managers have limited options for raising funds.
But Mr. Boamah said Private Equity is becoming an increasingly important factor in Ghana’s economic development hence the need to educate players in the industry to invest in it.
“If we have pension schemes investing in Private Equity Firms, we will have the returns staying in the country to help improve the returns of the pensioner” he added.
He revealed that, a major challenge of Private Equity Firms is find viable SMEs that are willing to upscale themselves and give up control to allow strategic partnership to grow and develop their businesses.
“We have a situation where our corporate governance is not as strong as a country especially SMEs space so they are mainly owned by family people who are not willing to lose control and allow a third party come in transform the business” Mr. Boamah stressed.
Some fund managers who were at the dialogue called on regulators to create a conducive regulatory environment for the Private Equity industry.
They maintained that, the absence of an appropriate regulatory framework for private equity and alternative investments in general does not facilitate the growth of the industry.
Latest Stories
-
Hopeson Adorye to form ‘Jail Them’ advocacy group
5 mins -
Shatta Wale once cried and knelt to apologise to Mahama – Dr Lawrence Tetteh
11 mins -
Former UK Prime Minister Boris Johnson turned away from polling station after forgetting photo ID
11 mins -
Nigeria soldiers face trial for deadly air strike ‘mistake’
20 mins -
Akufo-Addo, Otumfuo to commission Kumasi International Airport on May 10
22 mins -
PWDs who gain admission into tertiary institutions will be prioritised with government scholarships – Bawumia
25 mins -
Strongman regrets involving Fella Makafui in Medikal feud
27 mins -
NPP must unite now or perish later – Ameyaw-Akumfi warns
29 mins -
Fuel price adjustment: petrol surges to GH₵15.22, diesel falls to GH₵14.65
39 mins -
Kojo Golden nominated for Afrobeat Artiste of the Year at Ghana Music Awards USA
45 mins -
Ford Foundation partners foster collaborative solutions for host Community Development Trusts implementation in Nigeria
54 mins -
Appiatse reconstruction: Support Bawumia to do more for Ghana – Richard Ahiagbah to Ghanaians
1 hour -
I wanted Harry Kane at Man United – Ten Hag
1 hour -
Ayorkumi: Stage play on slave trade premieres on May 11
1 hour -
Majority defends GRA-SML deal, insists no wrong was done
2 hours