The Ghana Venture Capital & Private Equity Association (GVCA) has launched a sector-wide pact to increase local institutional investments in venture capital and private equity in Ghana and Africa. The initiative brings together key players in the pension, insurance and investment sectors in order to commit capital to local private funds.

Regulatory and ecosystem partners such as the Securities and Exchange Commission, the National Pensions Regulatory Authority, Impact Investing Ghana, and the Ashesi University Endowment Fund have also joined the Compact.

African institutional investors, especially pension and insurance funds, hold billions in underutilized capital that could be deployed to drive private sector growth. Still, local venture capital and private equity allocations remain low, due to perceived risks, regulatory barriers, and the limited track record of fund managers

The GVCA Compact is a coordinated effort to reverse this trend by building trust, creating awareness, and promoting regulatory alignment. It echoes similar calls across the continent to mobilize domestic capital for long-term investments in African businesses, by reducing dependence on foreign sources.

Local currency financing is particularly important in frontier markets where exchange rate volatility often erodes returns. By supporting funds domiciled in domestic markets, investors can maintain value locally while feeding sectors that create jobs and wealth. If successful, the Compact could serve as a model for other African markets and promote a regional shift towards sustainable and locally anchored capital markets