African Business Success: The Crafting of Hubtel
Hubtel Celebrates 20 Years of Digital Transformation in Ghana
Hubtel, a leading digital payment and e-commerce solution for small businesses in Ghana, recently celebrated its 20th anniversary. What started as a bulk SMS messaging service in 2005, under the name SMSGH, has evolved into a comprehensive digital platform that is revolutionizing the way businesses operate in Ghana.
In the early 2000s, text messaging grew rapidly in Africa due to its low cost compared to voice communication. SMSGH was founded on 12th May 2005 by Alex Bram, Ernest Apenteng, and Leslie Gyimah, with the aim of making the Short Messaging System (SMS) a business communication tool. Initially, the company catered to the communication needs of Ghanaian businesses, serving as a tool for small businesses to communicate and reach audiences using a mobile device.
By 2009, SMSGH had pioneered premium SMS in the form of SMS content messages. However, it wasn't until the company expanded beyond messaging that it truly found its stride. In response to the customers' need to process payments, mPOWER was born. This pivot marked the beginning of SMSGH's transformation into a digital payment solution and e-commerce platform.
By 2015, SMSGH had secured a 40% market share of Ghana's Value Added Services market. However, by 2016, the company noticed a slowdown in growth and went back to the drawing board to learn about the customers' needs. This introspection led to the launch of food delivery services during the COVID-19 pandemic, which was a huge success.
In 2017, SMSGH rebranded to Hubtel, symbolizing its evolution into a digital payment powerhouse and e-commerce platform. Today, Hubtel is used by almost eight thousand businesses in Ghana, connecting them to the online community.
The journey of Hubtel is one of continuous innovation. From a simple SMS bulk service to an integrated digital commerce platform, Hubtel has enabled small businesses in Ghana to thrive in the digital age. The company achieved profitability by the third year with a low margin, high volume business model.
Ernest Apenteng, the sales leader, attributes SMSGH's early profitability to understanding the customer and building strong unit economics from the beginning. The three founders, all graduates from the Kwame Nkrumah University of Science and Technology, built a profitable African tech venture.
In a tribute at Hubtel's 20th anniversary celebration in Accra in May 2025, Hon. Sam George, Minister for Communications, Digitalization, and Innovation, praised Hubtel for leading Ghana's digital transformation. Without Leslie Gyimah, who passed away in 2022, the founders celebrated the company's milestones and looked forward to continuing to serve Ghana's growing e-commerce ecosystem.
[1] Hubtel's 20th Anniversary: A Look Back at the Evolution of Ghana's Leading Digital Payment and E-commerce Solution
[2] Hubtel's Journey: From a Bulk SMS Service to a Powerful Digital Payment House
[3] Hubtel: 20 Years of Innovation and Growth in Ghana's Digital Economy
[1] Amidst Hubtel's celebration of 20 years, the transformation from a simple SMS service to a comprehensive digital finance and business technology platform is evident, revolutionizing how small businesses operate in Ghana.
[2] The evolution of Hubtel, Ghana's leading digital payment and e-commerce solution, can be traced from its inception in 2005 as SMSGH, through its expansion into premium SMS services and digitized payment solutions, and finally to its current position as an integrated digital commerce platform, marking significant progress in the field of technology and finance.
