In a groundbreaking move, Ashesi University’s Endowment Fund has invested in Janngo Capital, a pan-African venture capital firm. The university will become the first academic institution in Ghana to invest from its endowment into a venture capital fund, setting a precedent for academic institutions in the sub-region to explore new asset classes. This bold decision signifies a forward-thinking strategy that aligns with Ashesi’s long-standing commitment to innovation, entrepreneurship, and sustainable development in Africa.
Janngo Capital, which recently closed its second fund at $78 million, focuses on technology startups across Africa with a special focus on gender equality and social impact. The firm invests €150,000 to €5 million in startups operating in the healthcare, logistics, financial services, retail, agritech, mobility, and the creator economy sectors.
Pioneering university investment in venture capital
Universities around the world have long diversified their endowment portfolios through investments in alternative assets, including venture capital. Institutions like Harvard, Stanford, MIT, and the University of California have become LPs in leading VC funds. The University of California endowment for instance has invested over $800 million in Sequoia funds since 2018.
Ashesi’s decision to invest in Janngo is a first for Ghana, signalling a new era where educational institutions actively participate in Africa’s startup ecosystem. This move not only strengthens the university’s financial portfolio but also aligns with its mission to develop entrepreneurial leaders in Africa.
The rise of local money in Ghana’s private equity industry
Ashesi’s participation follows a recent trend of increasing local investment in Ghana’s venture capital industry. Injaro’s GHS 216 million fund was anchored by local pension funds such as Stanbic Investment Management Services, PETRA Securities, Databank Group, CAL Asset Management Company. Similarly, the $100 million Oasis Africa Fund II has also attracted commitments from marquee local pension funds, such as GCB Capital, Stanbic Investment Management Services, Data Bank Asset Management, CAL Asset Management, and PETRA Opportunity Trust.
These local investments highlight a gradual shift towards sustainable economic growth driven by African capital. By channelling funds into private equity, institutions are moving away from their traditional reliance on government securities toward investments that directly support the real economy. This approach promotes the growth of homegrown businesses and innovative startups, which in turn drives job creation, fosters entrepreneurship, and enhances economic stability across the region.
