The passage of the long-awaited Ghana Start-up and Innovation Bill could be the catalyst needed to invigorate the country’s struggling technology sector, according to Richard Nunekpeku, Vice President for Legal and Strategy at the Ghana Fintech and Payments Association.
Nunekpeku believes the bill is crucial for positioning Ghana as an attractive destination for global venture capital, especially as the country faces increasing competition from regional technology hubs.
The bill, which remains in draft form, has garnered significant attention as Ghana’s start-up ecosystem grapples with challenges in securing international funding. In 2024, Ghana secured just US$68 million in start-up funding, a stark contrast to other African nations like Kenya and Nigeria, which attracted US$638 million and US$410 million, respectively. This funding gap has raised alarms about Ghana’s ability to keep pace with the growing tech scene on the continent.
“The passage of the Ghana Start-up Bill into law could accelerate Ghana’s tech start-up ecosystem,” Nunekpeku told B&FT. He emphasized that the new Ministry of Communication, Digital Technology, and Innovation must take ownership of the bill’s finalization and push for its swift passage.
The legislation, which has been in the works since January 2020, is intended to create a structured framework that will support and foster innovation within the domestic technology sector. Given that Ghana’s share of start-up funding is currently a fraction of the amounts raised by regional peers, the bill represents a critical step toward nurturing local tech talent and attracting venture capital.
In 2024, Ghanaian start-ups received only 10.66% of the funds raised by Kenyan start-ups, and a mere 16.59% of the amount raised by Nigerian start-ups. By comparison, other leading African countries like Egypt and South Africa raised US$400 million and US$394 million, respectively. Kenya, which has established itself as ‘Africa’s Silicon Valley’, has benefited from a deliberate effort to build a robust regulatory framework, attracting diverse investments in fintech, clean-tech, agritech, and health-tech.
Nunekpeku believes that Kenya’s success can be attributed to its maturing start-up ecosystem, which has reaped the benefits of a well-structured regulatory environment. “Kenya has shown that a strong regulatory framework and a diversified innovation ecosystem can propel a country to the forefront of the African start-up scene,” he noted. In contrast, Ghana’s fintech ecosystem remains largely concentrated on payments, and its innovation landscape has yet to reach the level of diversity seen in regional competitors.
The challenges facing Ghana’s tech sector are compounded by the loss of investor confidence, especially after the collapse of the tech platform Dash in 2023. Dash, which raised over US$85 million, was found to have falsified growth numbers and engaged in excessive spending. This scandal has created a difficult environment for other start-ups in Ghana, making it essential for companies to implement strong corporate governance practices and build trust with potential investors.
“To regain investor confidence, especially after the collapse of Dash, it will take time and the verifiable implementation of good corporate governance and compliance systems,” Nunekpeku said. He emphasized the importance of diversifying the start-up ecosystem to include other sectors like agriculture, health, education, and logistics, which have received less attention in the past.
As Ghana continues to focus on its fintech sector, Nunekpeku advocates for a more inclusive approach to technology development. He also calls for the creation of a more robust regulatory framework that balances innovation with consumer protection. Government policies, he argues, must not only foster innovation but also safeguard consumers from issues such as fraud, cyber-attacks, and identity theft.
In addition, Nunekpeku stresses the need for educational reforms that build tech skills among young people across the country. “We must look at driving investment into ICT infrastructure and public-private partnerships to unlock funding, capacity building, and investments,” he said. The creation of tech hubs outside of major cities is also essential to ensure that young people in underserved areas have access to the tools and opportunities needed to succeed in the digital economy.
The proposed changes to the Ministry of Communication, which now includes digital technology and innovation, signal progress toward a more comprehensive approach to technology policy. If the Start-up Bill is passed and the necessary regulatory frameworks are implemented, Ghana could see a revitalized tech sector, attracting both local and international investment while nurturing the next generation of innovators.