Market Insights Financial Capital Raising

Traditional Capital Raising - Ghana

Ghana

The Total Capital Raised in Ghana's Traditional Capital Raising market market is projected to reach US$334.10m in 2024.
Venture Capital dominates the market with a projected market volume of US$327.30m in 2024.
In global comparison, most Capital Raised will be generated the United States (US$159,000.0m in 2024).
In Ghana, the Traditional Capital Raising market is witnessing a shift towards more structured and transparent fundraising processes to attract local investors.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

The Traditional Capital Raising market in Ghana is experiencing significant growth and development in recent years.

Customer preferences: Ghanaian investors have shown a strong preference for traditional capital raising methods such as bank loans and private equity investments. This can be attributed to a combination of factors including familiarity, trust, and perceived stability. Ghanaian investors tend to have a conservative approach to investing and prefer traditional methods that have been proven over time. Additionally, cultural factors play a role in shaping customer preferences, as Ghanaians value personal relationships and trust when it comes to financial transactions.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Ghana is the increasing demand for bank loans. Ghanaian businesses, both small and large, are increasingly relying on bank loans to fund their operations and expansion plans. This trend can be attributed to the growing economy and the need for capital to support business growth. Additionally, banks in Ghana have become more willing to lend to businesses, which has further fueled the demand for bank loans. Another trend in the market is the rise of private equity investments. Ghana has seen an increase in private equity firms entering the market, attracted by the country's growing economy and investment opportunities. Private equity investments provide businesses with access to capital and expertise, which can help drive growth and expansion. This trend is expected to continue as more investors recognize the potential of the Ghanaian market.

Local special circumstances: Ghana has a relatively stable political and economic environment, which has contributed to the growth of the Traditional Capital Raising market. The government has implemented policies to attract foreign investment and promote economic growth. Additionally, the country has a well-developed financial sector, with a strong banking system and a growing number of private equity firms. These factors create a conducive environment for traditional capital raising activities.

Underlying macroeconomic factors: The growth of the Traditional Capital Raising market in Ghana can be attributed to several underlying macroeconomic factors. Firstly, Ghana has experienced sustained economic growth in recent years, driven by sectors such as oil and gas, mining, and agriculture. This has created opportunities for businesses to expand and has increased the demand for capital. Secondly, the government has implemented policies to promote financial inclusion and access to credit. This has made it easier for businesses to access capital through traditional channels such as bank loans. Additionally, the government has introduced initiatives to support entrepreneurship and small business development, further fueling the demand for capital. In conclusion, the Traditional Capital Raising market in Ghana is experiencing growth and development due to customer preferences for traditional methods, increasing demand for bank loans, and the rise of private equity investments. The country's stable political and economic environment, along with underlying macroeconomic factors such as sustained economic growth and government policies, have created a conducive environment for traditional capital raising activities.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.