While Ghana has long been known for its natural resources, such as gold and cocoa, it is now emerging as a tech hub in Africa. Recent developments, such as Twitter establishing its African headquarters in Ghana and Google launching an AI lab in Accra, have put the country’s tech scene in the spotlight. Here’s what you should know about Ghana’s growing tech ecosystem:
Population and Literacy: Ghana has a population of around 31 million people, with approximately 57% of its population under the age of 25. The country has an adult literacy rate of 79%, which has eased the adoption of tech products among its population.
Tech Hubs: While Accra and Kumasi are the leading tech regions in Ghana, other regions like Tamale, Cape Coast, Takoradi, Volta, and Wa have been developing tech ecosystems in recent years.
Internet Penetration: Ghana’s internet penetration stands at 46.5%, higher than the African average but still below the global average. Internet connectivity and smartphone use play a significant role in driving tech markets.
Funding: Venture capital investment in Ghana has been growing, with several startups raising funding in recent years. However, Ghana lags behind countries like Nigeria, Kenya, Egypt, and South Africa in terms of venture funding.
Challenges: Ghana’s minimum capital requirements for foreign startups can be a hurdle, with a joint venture requiring at least $200,000 in capital and wholly-owned foreign startups needing a minimum of $500,000. This threshold can increase to $1 million with a minimum of 20 skilled Ghanaian employees if startups commence commercial activities in Ghana.
Startup Ecosystem Builders: Ghana has several hubs, accelerators, and venture firms contributing to its tech ecosystem. Some notable players include the Accra Digital Centre, Meltwater Entrepreneurial School of Technology (MEST), Impact Hub Accra, Stanbic Bank Incubator, and Kosmos Innovation Centre (KIC).
Key Players: MTN dominates the mobile money sector, while ride-hailing and logistics are led by Bolt, Uber, Yango, and Glovo. Jumia is a prominent player in the e-commerce space. Startups like mPharma, Zeepay, and Appruv have achieved continental success.
Future Opportunities: Ghana’s tech ecosystem is still in its early days, with fintech leading the way. There is room for startups to address lifestyle and social issues. The country’s calm founders and diplomatic reputation are seen as advantages in building bridges into other African markets. The goal is to attract diaspora talent to build from Ghana for the continent.
Overall, Ghana’s tech ecosystem is on the rise, with growing funding, supportive infrastructure, and a young, tech-savvy population contributing to its emergence as a tech hub in West Africa.
Source : techcabal