Ghana Embraces Entrepreneurship: Demonstrate Courage, Intelligence, and a Strategic Perspective According to Amma Gyampo
In the heart of West Africa, Ghana is making strides in adapting and innovating its approach to venture capital (VC) and private equity (PE), creating locally relevant strategies that are reshaping the investment landscape.
One of the key challenges facing Ghana's VC and PE sector is the limited participation of local capital. According to recent reports, around 81% of Ghana’s pension assets are tied up in government securities, with less than 1% allocated to VC or PE. This conservatism restricts the scaling of startups and innovative ventures that heavily rely on local patient capital.
Another hurdle is the fragile infrastructure in Ghana. Many startups operate without reliable logistics, internet, or digital payment systems. The imported VC models assume infrastructure readiness that is absent in Ghana, raising operational costs and hindering scalable growth.
Additionally, venture funds often push for rapid scaling akin to Silicon Valley timelines, which clash with the slower market adoption in Ghana, leading to flawed execution and premature failures. Risk aversion and social stigma around failure also contribute to a highly conservative mindset among investors and entrepreneurs, discouraging risk-taking and reinvestment.
However, steps are being taken to complicate the broad critique against VC/PE impact in Ghana. The Ghana Venture Capital and Private Equity Compact has been launched, mandating a 5% allocation of pension funds to VC and PE by 2026. This policy shift signals a major structural shift towards local institutional investment in these asset classes.
Increasing local investor education and the rise of pension-backed investment initiatives are slowly addressing the knowledge gap in VC dynamics, potentially enabling more domestic participation beyond foreign capital. While infrastructure remains a hurdle, digital transformation and mobile money growth in Ghana and wider Africa are spurring new opportunities for scalable tech-enabled businesses.
The presence and growth of development finance institutions (DFIs) provide stability and risk absorption, helping to bridge gaps in private capital deployment even during volatile economic conditions.
In 2024, Ghanaian startups raised only $102 million across 17 deals, marking a 7% decline in overall African venture funding from the previous year. However, if the 5% mandate for pension funds to invest in Ghanaian private capital is legalized, it could significantly boost funding for Ghanaian startups, potentially creating $337 million of funding for Ghanaian PE and VC firms by 2026.
The Ghana Venture Capital and Private Equity Association (GVCA) is working to create the legal, regulatory, tax, and convening infrastructure needed to support more deals. The GVCA recommends that institutional investors start building relationships with fund managers who understand the market and look at the case studies and talk to exited investors.
Exits in African markets are less frequent compared to mature markets due to emerging infrastructure and regulatory frameworks. However, examples of successful exits in Ghana include Verod's exit from a Ghanaian business and Zeepay's secondary sale exit.
Amma Gyampo, the executive director of the GVCA, believes that venture capital and private equity in Ghana require betting on local entrepreneurs, markets, and long-term potential. The ecosystem in Ghana needs to be prepared for the potential capital boost by building the capacity of institutional investors and promoting governance and equity in finance.
There is a need for more detailed, plain-English case studies that demystify the process of investing in Ghanaian startups. As the sector continues to evolve, it is essential to surface stories that help build shared understanding across the ecosystem.
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References:
[1] African Business Magazine. (2024). The state of African venture capital. African Business Magazine.
[2] International Finance Corporation. (2025). Development finance institutions in Africa: A catalyst for private sector growth. International Finance Corporation.
[3] Ghana Venture Capital and Private Equity Association. (2025). Ghana Venture Capital and Private Equity Compact. Ghana Venture Capital and Private Equity Association.
[4] World Bank. (2025). Digital transformation in Ghana: Opportunities and challenges. World Bank.
[5] McKinsey & Company. (2025). Building a vibrant venture capital ecosystem in Africa. McKinsey & Company.
- The limited participation of local capital in Ghana's venture capital (VC) and private equity (PE) sector is a significant challenge, with less than 1% of pension assets allocated to VC or PE, according to recent reports.
- Fragile infrastructure in Ghana poses another hurdle for startups, as many operate without reliable logistics, internet, or digital payment systems, increasing operational costs and hindering scalable growth.
- To address these issues, the Ghana Venture Capital and Private Equity Compact has been launched, mandating a 5% allocation of pension funds to VC and PE by 2026, potentially creating $337 million of funding for Ghanaian PE and VC firms by 2026.
- As the VC/PE ecosystem in Ghana evolves, there is a need for more detailed, plain-English case studies that demystify the process of investing in Ghanaian startups, to build shared understanding across the ecosystem.
