This policy is not just regulatory housekeeping. It is a bold signal of intent to reshape Ghana’s capital markets, so they serve not only institutional investors but also the country’s next generation of innovators. It’s also a timely intervention amid a sharp downturn in global VC activity. According to Pitchbook, venture capital deals in Africa have declined by more than 50% over the past three years, driven by macroeconomic volatility and tighter capital markets. Partech Africa’s Tech VC Report confirms the trend, showing that equity funding in Africa fell from $4.9 billion in 2022 to $2.2 billion in 2023.
In this context, Ghana’s reform is both urgent and strategic. For decades, African startups have been disproportionately reliant on foreign capital; often expensive, risk-averse, and disconnected from local realities. An ongoing IFC study shows that entrepreneurs strongly prefer equity investments from investors with regional experience. Yet only 20% of African startups receive financing from local sources. 2023 was a difficult year for Africa’s tech ecosystem as Investor withdrawal was widespread, and the number of investors participating in African startup funding rounds fell by nearly 50% compared to 2022, especially from institutional investors who typically lead the larger deals. Domestic institutions like pension funds and insurance companies must now step up to fill the widening gap.