Lack of Capital Major Barrier to Innovation in Ghana – Tech Entrepreneur
By: Solomon Nartey Tetteh
Tech entrepreneur Sedem Balfour has identified limited access to capital as the biggest challenge holding back innovation and startup growth in Ghana, despite improving internet penetration and increased access to digital technologies.
Ghana’s technology and startup ecosystem has grown steadily over the past decade, driven by increased internet penetration, mobile connectivity and a youthful, tech-savvy population. According to the Innovation Spark report, startup funding in 2024 totaled $127 million, illustrating progress in the ecosystem while also showing that investment remains concentrated among a few companies. Despite these gains, access to finance remains a persistent challenge for many startups. While early-stage funding through grants, seed capital and angel investors has improved, scaling capital remains limited.
Speaking on Business Breakfast on Zed 101.9FM, Mr. Balfour noted that while opinions may differ on the state of Ghana’s tech ecosystem, available data clearly points to funding constraints as the primary obstacle facing innovators.
According to him, internet access across the country has improved significantly, making it easier for digital products and services to reach a wider segment of the population.
“In this day and age, internet penetration is actually getting better. This means that if you are building digital products, they are more accessible to a wider population in Ghana, and people can actually use them,” he explained.
However, Mr. Balfour stressed that the lack of sustainable funding mechanisms for startups continues to stifle growth and innovation. He observed that access to investment is often limited to entrepreneurs within certain social circles, educational backgrounds or professional networks.
“Even for people raising money, you realise that they often have to be in particular circles, attend certain schools, or have specific connections before they can access funding,” he said.
He further explained that although many startups manage to raise seed or early-stage funding, they struggle to secure the capital required to scale and accelerate growth.
“Most startups can raise money at the early stages, but the capital needed to actually drive expansion is hardly ever available,” Mr. Balfour added.
Mr. Balfour reiterated that without deliberate efforts to expand funding vehicles and make capital more accessible, innovation in Ghana’s tech space will continue to face significant limitations.
He also called for more inclusive funding structures and deliberate policies to broaden access to capital, in order to unlock the full potential of Ghana’s growing tech and innovation ecosystem.
