Ahead of our 2024 Ghana Innovation & Startup Ecosystem Report release, we’re sharing some key insights with our valued readers. Our report reviews Ghana’s startup scene, highlighting success, challenges and key trends that shaped the ecosystem in the fiscal year.
In 2024, the Ghanaian startup funding ecosystem experienced a remarkable year, with startups raising $127 million in equity, debt, and grants across 31 deals—a 95% increase in deal volume compared to 2023. This growth felt almost miraculous, as mid-year figures stood at $55 million, and our projections suggested the year might end in line with 2023 funding levels ($66 million) since a couple of large-ticket deals we were aware of had not closed.
While the headline numbers are impressive, the details reveal critical nuances, such as the type of investment raised, the funding secured by female founders, and the significant contribution of the top 10 deals to the overall total.
A year of venture debt.
Debt financing witnessed a record-breaking surge, growing by an astonishing 431%, as companies secured $44 million in debt to scale their products, invest in capital expenditure and expand into new markets. This rise in venture debt reflects a global trend. According to Atomico’s State of European Tech 2024 report, European startups raised $4.7 billion in venture debt during the first three quarters of 2024—the highest figure on record. With traditional venture capital becoming increasingly selective amid a global market downturn, startups are turning to alternative funding channels to sustain their growth.
Fintech industry’s rebound.
Fintech, the “crown jewel” of the ecosystem, took its rightful place as the most funded sector, experiencing 1639% growth. The sector contributed 43% to the total funding volume. Following fintech, the Agriculture and Food sector attracted $25 million, which marked a 41% decline compared to the previous year. Despite this dip, Ghana’s agtech and foodtech industries continue to demonstrate resilience, maintaining their status as some of the most funded sectors year after year.
Female CEOs’ funding is still low.
It is still a man’s world, Male-led companies raised 154 times more capital than their female-led counterparts. Female-led companies secured just $780,000 in total funding, meaning that for every dollar invested, female-led companies received only $0.01. This marks a sharp decline from the previous year when female-led startups received $0.25 for every dollar invested.
In our upcoming detailed report, we’ll break down more of these trends. Sign up to our substack to get your copy when it is released.
