When you think of Ghana, what’s the first thing that comes to mind?
Perhaps the Ashanti Empire, the country’s laid-back vibe, or maybe the friendly rivalry over Jollof rice with neighboring Nigeria?
For years, Ghana has been recognized for its rich natural resources, particularly gold and cocoa. The country ranks as the second-largest cocoa producer globally and is one of the top ten gold-producing nations in the world.
Unlike its more prominent African counterparts like Nigeria, South Africa, and Kenya, Ghana has often flown under the radar when it comes to technology. However, the country’s emerging tech scene is quickly gaining attention and positioning itself as a rising player in the global tech landscape.
Recent investments by tech giants like Twitter, which established its African headquarters in Ghana, and Google, which opened an AI lab in Accra in 2019, signal the growing prominence of Ghana’s tech sector.
TechCabal recently visited Ghana to explore the heart of Accra and connect with key innovators. Here’s a deeper look into Ghana’s tech ecosystem, beyond the typical stereotypes.
The Demographic Advantage
Ghana is home to about 31 million people, with a population growth rate of 2.2% per year, making it the 13th most populous nation in Africa. Notably, more than half of the population is under 25 years old, suggesting that Ghana and other African nations will soon be home to a significant proportion of the world’s working-age population.
With an adult literacy rate of 79% (as of 2018), the country is primed for the adoption of technology. According to Foster Akugri, founder of Hacklab Foundation, Ghanaian youth are increasingly tech-savvy, with many local talents now being sought after by international companies.
Ghana has 16 regions, with Accra and Kumasi serving as the primary tech hubs. While these two cities lead, other regions like Tamale and Cape Coast are seeing growing tech activity as well.
As for tech infrastructure, internet penetration in Ghana stands at 46.5%, surpassing the African average but still lagging behind global standards and regional peers like Kenya (85%).
Investment Flow: A Promising Increase
Building a tech ecosystem requires significant investment. While venture capital across Africa grew from $400 million in 2015 to $2 billion in 2019, Ghana’s share has traditionally been smaller compared to leading countries like Nigeria, Kenya, Egypt, and South Africa.
In 2020, Ghana attracted $111 million in funding, as reported by Partech, placing it behind its larger counterparts. However, there are still opportunities for Ghana to attract more venture capital by fostering a startup-friendly environment.
The country’s strict capital requirements for foreign startups, including a minimum $500,000 investment for wholly-owned companies, can be a barrier for some. Despite these challenges, the rise in funding is evident, with local startups like mPharma, Jetstream, and Zeepay successfully raising capital this year.
Local investors such as Sangu Delle, Walter Baddo, and Kwamina Afful are also key players in fueling the ecosystem’s growth.
The Role of Hubs and Accelerators
Ghana’s government has made strides in supporting its tech ecosystem. In 2017, the Accra Digital Centre was established to house two key hubs, the Ghana Innovation Hub and Ghana TechLab, designed to incubate and accelerate tech startups.
The Bank of Ghana also launched the Fintech Office in 2023, alongside a regulatory sandbox, to encourage fintech innovations. Private-sector initiatives like the Meltwater Entrepreneurial School of Technology (MEST) and Impact Hub Accra have supported startups for over a decade, helping them scale and attract international attention.
Startups across the country benefit from such support networks, including the Stanbic Bank Incubator and the Kosmos Innovation Centre, which focus on areas like fintech and agritech.
Mobile Money and Telecom Giants
Mobile money is a significant part of Ghana’s tech landscape, with telecom giant MTN leading the way with over 17 million registered subscribers. Other telecom companies like Vodafone and Airteltigo also play a role in expanding the digital infrastructure.
Ride-hailing services like Uber and Bolt, along with eCommerce platforms like Jumia, are some of the most prominent tech-driven businesses operating in the country.
Success Stories and Growth Potential
Though Ghana hasn’t yet seen major tech exits, companies like mPharma, Zeepay, and Appruv are making waves across Africa. mPharma’s expansion into multiple African markets and Zeepay’s acquisition of a mobile money company in Zambia highlight the potential for Ghanaian startups to thrive beyond their home borders.
Looking ahead, there is strong optimism about Ghana’s tech future. As Jorge Appiah, CEO of SolarTaxi, notes, the current focus on fintech lays the groundwork for innovations in other sectors.
Investors are excited about the potential for Ghanaian startups to expand into broader African markets, with the country’s relatively small domestic market encouraging founders to think regionally from the outset.
As Gregory Rockson, CEO of mPharma, puts it, Ghana’s robust education system, political stability, and desire for success make it an ideal hub for tech talent across West Africa.
In conclusion, Ghana’s tech ecosystem is on the rise, and the future looks bright as it continues to attract both local and global investors, foster innovation, and produce world-class startups.
