The proliferation of accelerator programs, startup communities and tech hubs in Ghana has created a suitable environment for startups within the ecosystem to thrive.
While hundreds of startups emerge every day in the country, two promising places to watch are Bosea Technologies & Boost Ghana.
Despite huge regulatory challenges facing newer Fintech startups in Ghana, the intelligence of ingenious founders help steer startups out of the stormy regulatory waters. The likes of Bosea and Boost are redefining the scope of accessing capital and conducting commerce respectively in Ghana.
About Bosea Technologies
Bosea technologies is a fintech powerhouse whose microcredit mobile app provides lending opportunities to “lower bottom”-credit lacking-unbanked Ghanaians.
The startup’s loan assessment platform promises that loan seekers will receive loan eligibility results within 24 hours of applying. “We use primary and secondary data sources to generate insights into the character of the applicants.” said Paul Eshun, CEO of Bosea Tech.
The technology seems to be working for Bosea as the company has reported 92% repayment on its loans despite receiving about 300 loan requests every day.
“The Microcredit feature disburses around $2.5 million in loans per month to approved persons among the monthly 35,000 applicants,” Paul Eshun added.
The startup is also looking to launch Credify—a SaaS platform that provides end-to-end solutions for other microcredit firms. According to Paul, the new product will allow Bosea to receive up to a hundred thousand applications per month. The startup will also look to reach customers without internet access using Credify’s mobile officers’ app.
Meet Boost Ghana
Boost Ghana of Catalyst Fund’s Inclusive Digital Accelerator is developing efficient digital solutions for Ghanaian MSMEs. Co-founded by Joseph Kuvor, Boost Ghana provides distribution of fast-moving consumer goods and services and creates digital solutions for SMEs in Ghana.
According to the Registrar General's Department, 90% of registered businesses in Ghana are SMEs. An SME Research Report by Ghana Web indicated that SMEs contribute an estimated 70% of Ghana's GDP and account for approximately 85% of manufacturing jobs in Ghana. Yet, Ghana has a strong presence of micro-transactions that remain undigitized.
For more context, SMEs in Ghana provide 85% of manufacturing jobs and contribute 70% to national GDP, creating major stakes in the Nations’ export services and providing incentive tax revenues to the government.
The traditional nature of sales and the unevolved nature of Ghana’s supply chain poses significant challenges to micro-businesses
With Boost's interactive technologies, traders can place orders for all sorts of commodities. The platform provides a great user experience and smooth purchase processes for users.
In a conversation with Joseph Kuvor, the co-founder of Boost Ghana, we learned of Boost Technology’s insurgence, expanding their operations across all parts of Ghana. Asked about Boost Ghana’s goals for Ghana, the CEO explained :
“Our focus is on the micro and small retailers and we want to provide them with the best deals possible.”
Boost boasts of its competitive pricing and convenient delivery of supplies. The startup joined the first cohort of Catalyst Fund's Inclusive Digital Accelerator in Ghana, an accelerator program in partnership with MEST Africa, and BFA Global.
Currently, most micro retailers have to close shops when it’s time to restock supplies. The Boost Ghana team hopes to resolve that plight by also heavily investing in logistics support for businesses. With support from Catalyst Fund and Mastercard foundation, Joseph believes their impact on micro and small retailers in Ghana will be substantial in coming years.
Many SMEs especially in commerce face dismal problems. Access to capital (Bosea), credit, markets, supply, and logistics (Boost) are huge challenges facing Ghanaian businesses. However, with entrepreneurs like Joseph and Paul providing solutions to local businesses, MSMEs in Ghana have better opportunities to grow.
Update, May 10: Article updated to better reflect the relation between MEST, Boost Technology, and the Catalyst Fund Inclusive Digital Accelerator.