Accra, Nov. 8, GNA - The Venture Capital Trust Fund (VCTF) says it has obtained 44 million dollars for onward lending to Small and Medium Enterprises (SMEs) in the country with the assurance that it is out to make money available without depleting the existing fund.

Briefing the Ghana News Agency on the strides made to kick-start the VCTF introduced in the 2003 budget, Nana Osei-Bonsu, Chief Executive Officer (CEO) of VCTF, said through effective collaboration with a number of banks, insurance companies and securities companies, the Fund had managed to raise 33 million dollars which the Fund had matched up to make with 11 million dollars from its original capitalisation of 25 million dollars by government.

"What we have done is to form the Activity Venture Capital Financial Company from November 1, 2006, with the Ghana Commercial Bank/Agricultural Development Bank group which put together six million dollars while the VCTF put up four million dollars. The National Investment Bank/State Insurance Corporation group also put up six million dollars with four million dollars from the VCTF." Nana Osei-Bonsu said Fidelity Partners which came up with 15 million dollars, HFC Partnership raised four million dollars Gold Coast Securities raised two million dollars.

"This puts the total funds available to us about 44 million dollars instead of the original figure which we were to have disbursed to SMEs=85."

He said deals still in the works were with ECOBANK Partners and Boulders Securities which would be putting up five million dollars and 10 million dollars respectively to be matched up by yet to be determined sums from the VCTF.

Nana Osei-Bonsu stressed that the Fund's objective was to create jobs and triple the value of SMEs over the next four years, but mentioned the problem of data on the SMEs, which was flawed. On how SMEs could access the Fund, Nana Osei Bonsu said, all they needed to do was put together their business plans that clearly spoke for themselves, with a strategy, vision and current market share. The business plan should also come with a tax clearance certificate, indicating payments over the years.

He explained that once SMEs received funding from the Fund it became automatic that a member of the Fund sat on the Board of the SME to ensure adequate internal control systems.

Nana Osei-Bonsu said the Trust did not give out the amount required to the SME, "but we deposit the amount with the named bank and amounts for specific tasks and operations would be paid for.

"This is to avoid the situation where companies would use the amount for items other than what they have stated in their business plans. The objective is to ensure that as little money goes into the hands of the clients. It would free money for services, equipment and salaries."

Nana Osei-Bonsu said it was not the wish of the Fund to take over any company and thus urged all clients to come forward with their financial lawyers and other officials to negotiate the plans. He asked SMEs to approach the Fund, saying they did not request for collateral. He said the Fund did not invest more than 49 per cent according to the law.

"We are currently focussing on four areas, that is, pharmaceuticals, ICT, tourism and agriculture. These priority areas may benefit from about 55 per cent of the total funds available, while the remainder will be spread to cover other viable business opportunities. =93The VCTF is not a bank, but a trust fund that would provide money through non-bank finance companies to qualified businesses which need financing to run or start their operations.=94