The Ghana Innovation Ecosystem Report 2022 has disclosed an amount of US$212million worth of capital raised by Domestic Start-ups in 2022.
According to the report, 71 percent of the total Start-up funding came from venture capital firms, with financial technology firms (Fintechs) being the darling of the sector – which constituted 46 percent of the total investment.
Again, 45 percent of the capital was raised at the early stage – pre-seed and seed start-ups, with at least 15 established start-ups expanding their operations to 11 countries on the continent, the report said.
While Fintechs remain dominant, the most significant capital raised by a single Start-up, US$35 million, came from mPharma – a healthtech. Ghana also maintained its position as the 5th venture capital market in Africa.
The gender dynamics in fundraising was, however, appalling with a paltry eight percent of the total funding going to female-led Start-ups while gender-diverse teams raised nine percent of the total funding. Female-only teams raised 0.2 percent of the total funding.
Ghana Described As A Great Investment Hub
Commenting on the development, Prof. Elikem Nutifafa Kuenyehia, the Chairman of Keystone Solicitors, said the opportunities in the Ghanaian tech space are a biggest open secret in global tech investing.
Making reference to the report by Africa Development Bank, Prof. Kuenyehia noted that aside Nigeria, Ghana is the top destination for foreign direct investment in Western Africa. The country accounts for 31.5 percent of total foreign direct investment cash flows.
“I think we haven’t even begun to scratch the surface of opportunities. What I am looking forward to see in the Ghanaian ecosystem in 2023, is more money – and a more diversified group of investors generally investing in Ghanaian start-ups and growth companies (not just tech companies). Entrepreneurs with viable propositions will attract money from a broader base of investors – smaller and individual investors who might previously have invested in government papers.”
Prof. Elikem Nutifafa Kuenyehia
Co-founder and Chief Executive Officer (CEO) of ScaleUp Africa, Mrs. Ama Gyampo averred that as a business development services and technical assistance provider, her firm is optimistic about more emerging disruptive ventures, active local fund managers, and women-led businesses.
“We look forward to the commencement of the operational set-up of a fund of funds. This blended finance vehicle seeks to unlock US$75million in funding for local capital providers investing in SMEs to advance the Sustainable Development Goals. This milestone comes from the extensive entrepreneurial ecosystem collaboration between venture capital funds, pension funds and other advisors.”
Mrs. Ama Gyampo
On his part, CEO and co-founder of hapaSpace, Mr. Gideon Brefo, urged local innovators to forge collaborations with both domestic and foreign partners, saying: “Otherwise the people in the diaspora will sweep all the opportunities in the ecosystem”.
“There are many donor activities on the horizon. I foresee many ecosystem activities since the people in the diaspora are moving back to do business here.”
Mr. Gideon Brefo
Read more: MSMEs In Ghana To Be Supported With $3.9 million- UNIDO Announces
