Ghana attracted over $29 million in venture capital (VC) funding in the first half of the year, according to Startup Africa Tracker.
This amount represents 10.7 per cent of the total $270 million VC funding that flowed into West African countries during this period.
Ghana’s share of VC funding was higher than Senegal’s $11 million (4.07 per cent) and Benin’s $50 million (18.5 per cent) secured through a single deal (Spiro).
Venture capital is a form of private equity financing provided by firms or funds to startups, early-stage, and emerging companies with high growth potential or demonstrated growth in terms of employees, revenue, and operations.
In the West African sub-region, Nigeria secured $172 million (64 per cent) of the funding, making it the largest recipient in the region. Nigeria’s VC funding equated to 23 per cent of Africa’s total, making it the second most attractive market for VC funding. Historically, Nigeria has dominated Africa’s startup funding due to its large population, entrepreneurial spirit, and significant market potential. South Africa, Kenya, and Egypt complete the “big four” investment destinations on the continent.
However, in the first half of 2024, Kenya attracted an impressive $244 million in startup funding, capturing almost a third (32%) of all funds raised by startups in Africa. Kenya’s share of total funding grew by 5 percentage points compared to 2023, while other “big four” markets like 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 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 may signal a shift in investor interest outside the traditional market leaders. Investors could be recognizing the burgeoning opportunities in East Africa, driven by robust economic policies, growing tech ecosystems, and increasing digital adoption across the region.
