It has been a tough 2023 for most tech companies in Ghana.
This year, Ghana signed an agreement with the International Monetary Fund (IMF) to secure a $3 billion credit facility as the country’s debt-to-GDP ratio soared above 90% and it was having trouble paying its debtors.
The country also faced high inflation (59%) along with a high exchange rate against the dollar (high from 1 USD to 13 GHC).
With all these factors, Ghanaian tech companies have had to adjust to rising prices and poor economic conditions. Going into 2024, how will the tech ecosystem manage?
We try to see what we might see in 2024 with Ghana’s tech ecosystem.
Death due to lack of funding
In 2023, Ghana recorded low venture capital funding for its ecosystem. According to the available data, the companies pumped just ~$68 million in 2023compare to ~$202 million the last year.
Ghana is no exception as the entire African tech ecosystem has also seen a decline in funding.
If the lack of funding continues, we expect to see some startups run out of cash and eventually have to shut down in 2024.
Will Ghana Finally Open Banking in 2024?
The Bank of Ghana has unveiled its roadmap for the National Payment Systems Strategic Plan (2019-2024) sometime back in 2022. The roadmap includes the adoption of Open Banking. Open banking is where a customer can transfer their bank data to a new bank or allow their records to be accessed by third-party fintechs.
The regulator has not mentioned its roadmap so far, and with 2024 fast approaching, we wonder if this goal can be met. But we wouldn’t be surprised if that directive was delayed, as the BOG delayed its eCedi pilot and faces public scrutiny over losses to the economy.
If implemented, Ghana will join Nigeria as one of the few African countries with open banking policies.
Worse or Better Economy?
Ghana’s economic situation will affect the tech ecosystem going forward in 2024. With the government in debt and needing to mobilize revenue, the Ghana Revenue Authority has been very aggressive in meeting its revenue target.
The E-Levy has also been a thorn in the side of many citizens, but so far it has failed to achieve its goal. The levy has led some fintechs and other startups to push the cost to consumers on the front end.
With Ghana going to the polls next year in December 2024, there is an expectation that government spending will increase as it has historically.
With all these factors, many believe that the tech ecosystem in Ghana may be “stagnant” in the coming year.