BTA2023 The signing of a Memorandum of Understanding (MoU) between the Venture Capital Trust Fund (VCTF) and the 24-Hour Economy Secretariat to establish a dedicated financing vehicle for small and medium-sized enterprises (SMEs) operating around the clock is a significant and timely intervention.
For years, Ghanaian SMEs have struggled to access long-term, patient capital — particularly for industrial ventures requiring heavy upfront investment and extended operational hours. Conventional commercial lenders have largely avoided such risk exposure, leaving many growth-oriented businesses underfunded.
According to Mr. Emmanuel Abbey, Chief Executive of VCTF, the MoU is specifically structured to provide long-term, risk-tolerant financing tailored to businesses adopting continuous production models.
From Policy Vision to Institutional Action
First announced at the 2025 Kwahu Business Summit, the agreement was formally concluded on March 2, 2026 — marking one of the most tangible institutional steps taken so far to support government’s 24-hour economy agenda.
The initiative aligns with broader economic restructuring efforts aimed at boosting industrial output, exports, and job creation.
Presidential Advisor for the 24-Hour Economy and Accelerated Export Development, Augustus Tannoh, has previously highlighted Ghana’s high energy costs as a structural constraint undermining the country’s competitiveness in attracting industrial investment.
In this context, the convergence of targeted financing and potential energy cost interventions could materially reshape the feasibility of round-the-clock manufacturing.
Energy as the Missing Link
Importantly, VCTF is exploring cross-portfolio collaboration to address energy constraints. A solar installation company within its investment portfolio may provide renewable solutions to supported manufacturing firms — potentially lowering operating costs for 24-hour businesses.
If implemented effectively, this integrated financing-and-energy model could offer SMEs a competitive edge not only locally but across the West African sub-region.
A Working Model: The ESERB Example
The success of ESERB, a Tema-based mattress manufacturer backed by VCTF funding, illustrates what structured venture financing can achieve.
According to Emmanuel Ewool, Chief Executive of ESERB, the company had no operational footprint prior to securing funding. The capital injection enabled:
- Land acquisition
- Facility construction
- Machinery procurement
- Workforce recruitment and training
- Product certification
Today, ESERB holds certification from the Ghana Standards Authority and is expanding distribution across Accra, with informal export activity already recorded in Côte d’Ivoire ahead of its formal commercial launch.
The company aims to expand across West Africa within three to five years — a trajectory that would have been unlikely without patient capital support.
Why This Matters
Unlocking SME funding is not just about credit access; it is about enabling structural transformation.
If Ghana’s 24-hour economy is to succeed, SMEs must have access to:
- Long-term capital
- Affordable energy solutions
- Export market access
- Governance and technical support
The VCTF-24 Hour Economy partnership represents a critical foundation. The real test will be scale, speed, and execution.
Should the financing facility deliver measurable results, it could redefine how Ghana funds industrial growth — and serve as a model for other emerging economies.
