The Ghana Venture Capital and Private Equity Association (GVCA) and Impact Investing Ghana (IIGh) have released a baseline report on the State of Venture Capital and Private Equity (VC/PE) in Ghana offering an in-depth analysis on the role VC/PE investments have played in fostering economic growth, promoting gender equality, and driving social outcomes since 2004.
The report provides actionable insights to drive the growth of VC/PE in Ghana. The baseline report was launched at the just ended Ghana Impact Summit 2024 held on the 22nd May 2024 in Accra, Ghana with funding from GSG Impact and the International Development Research Centre (IDRC), the Research and Innovation Systems for Africa (RISA) Fund of the United Kingdom International Development and support from On Think Tanks and Impacto.
Ghana’s 20-year-old venture capital and private equity (VC/PE) ecosystem has emerged stronger from the challenges COVID-19 posed. Demonstrating resilience and adaptability, it has shown significant growth in both deal volume and value. This research report builds on the World Bank’s 2016 study of the Ghanaian VC/PE ecosystem and IIGh’s 2023 report on “Unlocking Private Sector Capital for Profit and Impact”, addressing a number of critical data gaps identified especially the inadequate understanding of VC/PE in Ghana, and data deficiencies on fund and industry performance.
The CEO of GVCA, Hannah Acquah said the “future landscape of Ghana’s VC/PE sector looks promising. Venture capital and private equity are increasingly important as drivers of economic growth and entrepreneurship not only in our country but Africa in general. This report reveals the asset class in Ghana has grown from one single USD 6 million fund in 1992 to nearly USD 7 billion in funding in 2023. This growth has stimulated the creation of over 44,000 direct jobs, facilitated access to essential services, including healthcare and education, and even enabled some gains in climate action”.
Amma Lartey, CEO of Impact Investing Ghana said that the “release of this research report comes at a moment of renewed interest in increasing pension investments in Ghanaian businesses through VC/PE funds to develop the economy and deliver positive returns to pension clients. This growing interest is reflected in the rise in capacity-building initiatives designed to meet this very goal. IIGh’s hope and expectation is that pension funds, policymakers, regulators, investors, fund managers, businesses and other stakeholders will use the findings unearthed in this report to take informed action that unlocks higher levels of local venture capital and private equity for impactful investments in Ghana”.
