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Emerging markets such as Indonesia, the Philippines, Vietnam, Ghana, Uganda, Kenya, and Nigeria are experiencing profound digital transformations. With youthful populations, increasing internet access, and a strong demand for mobile solutions, these regions present opportunities not only for growth but also for meaningful impact. As these economies digitize, they are setting the stage for rapid advancements in financial inclusion, e-commerce accessibility, and mobile-first innovations.
At Buko Ventures, we recognize that early-stage investments in these markets can bridge gaps in essential services, catalyzing sustainable growth. With 4 billion people already accessing the internet daily, half the world still stands on the edge of digital transformation. At Buko Ventures, we strive to support the creators of this next wave of the internet, an emerging economy set to shape the future for millions.
Indonesia, Southeast Asia’s largest economy, is experiencing significant growth in its digital economy. With an 83 percent mobile penetration rate as of 2022, projected to reach 94 percent by 2028, mobile-first solutions are driving e-commerce adoption. According to Statista, Indonesia’s e-commerce market is expected to reach $79.3 billion by 2029, indicating a steady growth trajectory. This expansion is fueled by a young, tech-savvy consumer base, with over half of the population under 30.
Additionally, Indonesia’s government initiative, Making Indonesia 4.0, is advancing the country toward digital transformation across various sectors. This creates further opportunities for startups addressing logistical and supply chain challenges, especially given Indonesia’s complex geography of over 17,000 islands.
The Philippines is emerging as a key market for fintech and e-commerce, with strong digital engagement across its population. According to Statista, the digital payments sector is projected to reach $43.65 billion by 2024, with an annual growth rate of 8.91 percent through 2028. A digitally active population supports this shift toward cashless transactions, with 76 million Filipinos as active social media users, according to the Asian Development Bank.
Government initiatives, such as the Innovative Startup Act, offer tax breaks, grants, and simplified registration to support growth in sectors like fintech and e-commerce. The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act further enhances the investment landscape by lowering corporate tax rates and providing fiscal incentives. These measures, combined with strong digital engagement and projected economic growth, make the Philippines a favorable environment for venture capital.
Vietnam is one of Southeast Asia’s fastest-growing digital economies. According to a report by Google-Temasek, the country’s digital economy is expanding at a 29 percent annual rate, with the e-commerce market expected to reach $39 billion by 2025. High internet penetration and a youthful population are key drivers of this growth.
Vietnam’s economic success also stems from its manufacturing and export sector, bolstered by the Đổi Mới policy of 1986, which transitioned the country to a market-oriented economy and attracted foreign direct investment. According to Vietnam Briefing, this policy transformed Vietnam into a major manufacturing hub, particularly in electronics and textiles. The country’s commitment to renewable energy further enhances its investment appeal, creating opportunities in logistics, supply chain solutions, and IoT for a rapidly modernizing economy.
Ghana’s economy has seen robust growth, with a 6.9 percent expansion in the second quarter of 2024, largely driven by the mining sector. Gold mining, a major contributor, grew by 23.6 percent, making extractives a pivotal area for investment. The services sector, including information and communication technology (ICT), also continues to expand, fueled by innovations and increased data demand. According to Oxford Business Group, the ICT sector’s contribution to GDP nearly doubled from 2014 to 2017, supported by a growing digital economy and rising internet access.
Fintech and financial services are key areas of growth, enhancing financial inclusion through innovative solutions, while the healthcare sector is expanding due to investments in infrastructure. These developments across diverse sectors, along with Ghana’s political stability and role in the African Continental Free Trade Area (AfCFTA), position it as an attractive market for venture capital in West Africa.
Uganda is a leader in East Africa’s fintech sector, with 22 million people (54 percent of the population) accessing financial services via mobile phones, according to the Uganda Communications Commission. The fintech market is growing at a 15 percent annual rate, driven by mobile payments and efforts to extend financial services to underserved populations.
Beyond fintech, Uganda’s renewable energy sector is also gaining momentum. With a focus on improving access to clean energy, the country has attracted startups working on solar energy solutions and rural electrification. This development, along with innovation hubs like Innovation Village supporting startups in healthcare and education, contributes to a thriving early-stage venture ecosystem in Uganda.
Kenya has long been at the forefront of mobile finance innovation. According to GSMA, M-Pesa processes $55 billion annually, nearly 48 percent of Kenya’s GDP. This success has fostered the growth of fintech startups across digital lending, insurance, and other financial services, with Kenya’s fintech sector expected to grow by 17 percent annually.
In addition to fintech, Kenya’s agricultural sector, a key part of its economy, is seeing significant innovation. Agritech startups are developing solutions for supply chain transparency, market access, and agricultural efficiency. Renewable energy is also a growing sector in Kenya, with government support for green energy projects such as geothermal and solar power, creating new opportunities for investment in sustainable development.
Nigeria, Africa's largest economy, is experiencing rapid fintech growth. According to Statista, the fintech market in Nigeria is projected to grow by 11.95 percent between 2024 and 2028, resulting in a market volume of $14.34 billion by 2028. This growth is driven by mobile money services and a youthful, tech-savvy population. Nigeria's digital economy is expanding at 19 percent annually, making it one of the continent's most dynamic startup ecosystems.
Nigeria's entertainment industry, particularly in film and music, is also booming. Known as "Nollywood," the film industry is now one of the largest in the world by production volume, contributing to Nigeria's GDP and creating export opportunities. Additionally, with 43 percent of the population under the age of 15, Nigeria presents vast opportunities in digital education, youth-focused services, and e-commerce, making it a diverse market for venture capital.
Emerging markets such as Indonesia, the Philippines, Vietnam, Ghana, Uganda, Kenya, and Nigeria present immense opportunities for early-stage venture capital. These regions, characterized by youthful populations, increasing digital penetration, and growing demand for tech-enabled services, offer fertile ground for innovation in fintech, e-commerce, and mobile-first solutions. Investing in these markets provides access to high-growth sectors, untapped potential, and the opportunity to shape the future of digital economies.
