Ghana attracts $29m in venture capital funding for first half of 2024
Ghana, within the first half of the year, attracted venture capital (VC) funding worth over $29 million according to Startup Africa Tracker.
This represents 10.7% of the total $270 million venture capital funding that flowed to West African countries.
Ghana’s share of VC funding was higher than that of Senegal which managed to secure some $11m (4.07%) in funding while Benin attracted $50 million (18.5%) through a single deal (spiro) within the period under review.
Venture capital (VC) is a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number of employees, annual revenue, scale of operations, among others.
In the West African sub-region, Nigeria secured $172 million (64%) in funding making it the largest share of the regional funding.
Nigeria, with the VC funding secured, emerged as the second most attractive market for VC funding with its funding equating to 23% of Africa’s total.
Historically, Nigeria has raked in the lion’s share of Africa’s startup funding, a testament to its large population, entrepreneurial spirit, and significant market potential. South Africa, Kenya and Egypt make up the rest of the “big four” investment destinations on the continent.
However, within the first half of 2024, Kenya hauled an impressive $244 million in startup funding.
In the review period, the East African nation captured almost a third (32%) of all funds raised by startups in Africa, according to the startup tracker, Africa: The Big Deal.
Kenya’s share of total funding grew by 5 percentage points compared to 2023 as other ‘Big Four’ markets, Nigeria, South Africa and Egypt struggled.
In East Africa, Kenya accounted for 86% of the region’s total funding, down slightly from 89% in 2023 while overall, the region led the continent by attracting 37.5% ($285 million) of total venture capital.
Uganda was the only other East African nation to surpass $10 million, raising $19 million, while Tanzania narrowly missed this threshold with $9 million.
The remaining countries, including Sudan, Ethiopia, and Rwanda, each garnered less than $5 million.
Kenya’s and East Africa’s successful fundraising trend could be signalling a shift in investor interest outside the traditional market leader.
Investors might be recognizing the burgeoning opportunities in East Africa, driven by robust economic policies, growing tech ecosystems, and increasing digital adoption across the region.
