Ghana’s Startup Ecosystem Poised for Transformation

Tuesday, 18th March 2025

By inAfrika Reporter

Ghana is on the brink of a significant transformation in its entrepreneurial landscape as the Ghana Innovation and Startup Bill (GISB) nears parliamentary approval. This landmark legislation aims to establish a comprehensive framework to support innovation, attract investment, and position Ghana as a leading hub for startups in West Africa.​

The development of the GISB commenced in 2020, initiated by the Ministry of Business Development in collaboration with the National Entrepreneurship and Innovation Programme (NEIP) and key private sector stakeholders. A dedicated seven-member committee, including representatives from the Ghana Chamber of Young Entrepreneurs, Ghana Hubs Network, Ghana Startups Network, Private Enterprise Federation, and Ghana Digital Centers Limited, was formed to spearhead the drafting and advocacy efforts. Over the years, extensive consultations have been conducted with various stakeholders, encompassing government agencies, private sector entities, and development partners, to refine the bill’s provisions. l

The GISB is designed to address critical challenges faced by entrepreneurs and foster a thriving startup ecosystem. Key aspects of the bill include:​

• Legal Recognition of Startups: Establishing clear definitions and criteria to ensure startups receive tailored support.​
• Tax Incentives: Offering tax breaks and financial relief to bolster the growth of early-stage ventures.​
• Enhanced Funding Access: Improving avenues for grants, venture capital, and government-backed funding.
• Simplified Business Registration: Streamlining procedures to reduce bureaucratic hurdles and foster a more startup-friendly environment.
• Strengthening Innovation Hubs: Nurturing existing centers and creating new incubators to support entrepreneurial talent.

In recent developments, the Ministry of Communication, Digital Technology, and Innovations has intensified efforts to finalize the bill. In February 2025, the ministry hosted a meeting with representatives from Heritors Labs and consultants from the Council for Scientific and Industrial Research (CSIR) to discuss the GISB. During this meeting, evidence reports were presented, providing valuable insights into the current landscape of innovation in Ghana. The ministry agreed to a structured three-step review process, gathering feedback from committee, zonal, and national levels, to ensure input from essential stakeholders before the final draft is submitted to Parliament. The goal is to activate this process by May 2025, ensuring the bill is presented to Parliament before the upcoming recess. ​

In March 2025, the Minister for Communications, Digital Technology, and Innovations, Hon. Samuel Nartey George, convened a meeting with ecosystem actors to deliberate on the GISB. The discussions focused on aligning efforts to streamline the regulatory framework that will drive entrepreneurship and innovation in Ghana. The Minister directed the teams to collaborate and submit a harmonized draft bill within 14 working days, underscoring the government’s commitment to expediting the legislative process. ​

The enactment of the GISB is anticipated to have several positive outcomes for Ghana’s tech ecosystem. A clear and supportive regulatory framework is expected to reassure investors, making Ghana a more attractive destination for venture capital and foreign direct investment. Simplified processes and financial incentives are likely to lower the barriers to entry, encouraging more individuals to start their own businesses. Support for innovation hubs and access to funding are expected to create an ecosystem conducive to creativity and technological advancement.​

While the GISB holds promise, several challenges need to be addressed to ensure its successful implementation. The success of the bill hinges on the government’s ability to effectively implement its provisions, requiring adequate resources, coordination among agencies, and continuous monitoring. Ongoing dialogue with entrepreneurs, investors, and other stakeholders is essential to adapt the regulatory framework to evolving needs and challenges. Ghana can draw lessons from Nigeria and Senegal’s experiences, adapting best practices and avoiding potential pitfalls observed in these countries’ startup ecosystems.​

The Ghana Innovation and Startup Bill represents a pivotal step toward strengthening the country’s innovation ecosystem. By providing a supportive regulatory environment, the bill aims to unleash the potential of Ghanaian entrepreneurs, drive economic growth, and position the country as a leader in the West African tech landscape. As the bill progresses toward parliamentary approval, the collaborative efforts of all stakeholders will be crucial in shaping a vibrant and sustainable startup ecosystem.