In a pioneering move, Ashesi University, a private, non-profit institution in Ghana, has entered the African venture capital scene with a strategic investment from its endowment fund in Janngo Capital. This initiative marks Ashesi as the first academic institution in Ghana to channel endowment resources into venture capital, signaling a new era of educational institutions supporting the continent’s growing startup ecosystem.
A New Kind of Investor in Ghana’s VC Landscape
Janngo Capital recently closed its second fund at $78 million, with the aim of backing technology startups that address critical challenges across Africa. Its investment portfolio spans sectors such as healthcare, logistics, financial services, agritech, mobility, and the emerging creator economy, with a specific focus on gender equality and social impact. Ashesi’s investment aligns with the university’s mission to foster ethical and entrepreneurial leadership, expanding beyond classroom walls to influence the startup ecosystem and champion socioeconomic development across Africa.
The investment also reflects an encouraging trend among Ghanaian institutions to participate in local venture capital. Recent developments have shown a surge in local investors — such as pension funds and foundations — committing to the sector. This includes the GHS 216 million Injaro Agricultural Capital Holdings Fund and the $100 million Oasis Africa Fund II, both anchored by Ghanaian pension funds. Ashesi’s involvement adds a distinct dimension to this trend, emphasizing the importance of educational institutions in stimulating sustainable investment within Ghana.
Diversified Strategy and Long-term Goals
Ashesi University’s endowment investments, valued at nearly $10 million according to the latest financial statements, follows a diversified total-return strategy with a portfolio mix of equities, fixed income, and, now, venture capital investments. The endowment’s investment policy, reviewed annually, aims for a balanced allocation — 0%-30% cash, 30%-70% equities, and 30%-70% fixed income — to balance growth and stability. The inclusion of venture capital through Janngo brings further diversification and potential for significant returns that can fuel the university’s academic initiatives.
Founded in 2002 by Patrick Awuah, a former Microsoft engineer, Ashesi University has earned a reputation as a forward-thinking institution that cultivates innovation and critical thinking among its students. The university ‘s emphasis on ethical leadership and entrepreneurial skills aligns with the nature of Janngo ’s portfolio, making this investment a natural extension of the university’s commitment to Africa’s economic and social progress.
A Growing Role for African Universities in Venture Capital
This strategic move by Ashesi University in Janngo Capital echoes a broader trend in Africa, where academic institutions are beginning to step into the venture capital space. In South Africa, Stellenbosch University’s University Technology Fund (UTF) supports spinouts in industries from shark safety to cancer detection, and it recently launched a second fund dedicated to scaling later-stage startups. As Anita Nel, Stellenbosch’s Chief Director of Innovation, observed, “By creating spinouts, we can retain more value locally, fostering economic growth and technological advancement within South Africa.”
For African universities like Ashesi and Stellenbosch, these investments are more than financial commitments; they are strategic efforts to leverage institutional influence and resources to nurture the continent’s entrepreneurial landscape. As educational institutions continue to invest in and foster high-impact ventures, they are not only supporting innovation but also setting a powerful example for other universities across Africa.
Looking Ahead
Ashesi University’s venture into the VC space with Janngo Capital marks a pivotal moment in Ghana’s educational and financial landscapes. As both Ashesi and Janngo pursue their shared mission to drive social impact through business, this partnership could serve as a catalyst for further engagement from other African educational institutions. By bridging academia with entrepreneurship, Ashesi University is paving the way for a new model of university endowment management in Ghana and across Africa, setting the stage for sustained innovation and growth in the continent’s startup ecosystem.