Investing in African Startups

Time and time again in my career, I’ve seen one truth repeat itself: If you design solutions without listening to the Nigerian market, the market will reject you — loudly. From private sector to public sector, from big tech vendors to new-age startups, I keep finding myself having the same conversation: 🗣️ “Your solution is brilliant… but it doesn’t make sense for this market.” Too many technology companies still build for themselves, not for Nigerians. They prioritize what looks sophisticated — instead of what solves real, contextual problems. And here’s the reality we don’t say enough: 🇳🇬 Nigeria is not Silicon Valley. We don’t consume tech the same way. Our infrastructure, price sensitivity, culture, and adoption curve are different. Very different. Yet, year after year, we see great ideas fail simply because the creators didn’t pause long enough to ask: 👉 What does the Nigerian user actually want? 👉 How do they behave? 👉 What constraints shape their decisions? Innovation only works when it respects context. And the Nigerian market — with all its scale and complexity — rewards those who are humble enough to listen. In my latest article, I break down: 🔹 Why foreign and local tech teams often misread the Nigerian market 🔹 The 4 mistakes companies make when designing products for Africa 🔹 What the most successful players do differently 🔹 How public institutions can guide vendors toward truly impactful solutions 🔹 The future of user-centric innovation in Nigeria’s tech ecosystem If you work in product, engineering, policy, sales, design, or anything tech-adjacent — this is a must-read. 👉 Read the full article here published on Nairametrics — and let’s build solutions that actually work for Nigerians. Link in comments.

What happens when African fund managers lead the investment strategy? In a recent CNBC Africa interview, DOROTHY NYAMBI, CEO of MEDA (Mennonite Economic Development Associates) shared powerful insights into how the Mastercard Foundation Africa Growth Fund is reimagining what it means to put African capital in African hands. The Fund demonstrates that capital can be reimagined and redirected to serve African fund managers, entrepreneurs, and especially women, using a gender-lens and locally led investment model that: 1. Rethinks gender-lens investing • It’s not about ticking diversity boxes- it’s about empowering women with real agency to influence investment decisions and strategy. • The Fund emphasizes patience and local context, shaping investment approaches to suit real-world African realities rather than imposing external templates. 2. Builds local ecosystems • Local leadership matters. The Fund invests in and supports African and female-led managers, ensuring they are not just invited to the table- but leading it. • It enables fund managers to spearhead strategy and draw in other stakeholders, strengthening the investment ecosystem from within. 3. Focuses on returns “on inclusion” • The Fund measures more than financial returns. It prioritizes social impact, like job creation and economic empowerment. • The goal: dignified, sustainable employment, particularly for African youth, moving beyond short-term fixes. 4. Is intentional about youth and women inclusion • The Fund challenges outdated narratives that investing in women is riskier, instead proving the financial viability of women-led enterprises. • It applies a holistic, end-to-end gender lens, supporting women as entrepreneurs, fund managers, and drivers of growth across the value chain. Impact so far: • ~US$150 million deployed across 18 African-led investment vehicles • 49 SMEs supported in 12 countries • 2,500 full-time jobs created, with 1,100 held by women • 75% of supported vehicles are female-led • Honored with the DEI Award at AVCA’s 20th Anniversary Conference In essence, African-led, gender-smart capital flows are delivering equity and economic resilience. Fund managers and entrepreneurs are shaping outcomes with a clear focus on inclusion, impact, and sustainability. This is a transformative model where African and female-led fund managers are no longer just recipients of capital, but drivers of it, reshaping the investment landscape to deliver both financial returns and lasting, meaningful change across the continent. Watch the full interview: https://lnkd.in/d9SuiuSj #Africa #GenderLensInvesting #InclusiveCapital #ImpactInvesting #Leadership #YouthEmployment

The most important signal in #Africa's start-up funding story right now is stability... Since Aug 2025, Africa’s 12-month rolling start-up funding has sat in a tight band around $3.1b (±$90m). After the 'heatwave' peak and the long 'winter' comedown, that kind of consistency is rare — it suggests the market has found a baseline, rather than just bouncing off a low. And it’s not just the dollars. The rolling number of ventures clearing meaningful thresholds has also stayed steady: ~211 ventures raising $1m+ (±5) ~65 ventures raising $10m+ (±4) In plain terms: the ecosystem has found a cruising speed, a “repeatable” run-rate where outcomes are less driven by a handful of mega-rounds. But this “new normal” is made of different ingredients. Pre-heatwave, the market was overwhelmingly an equity story. Today, debt is a real pillar: in the current plateau it represents roughly two-fifths of funding (39% ±3%), with equity ~$1.8b (±$125m) and debt ~$1.2b (±$125m) on a 12-month rolling basis. Why does it matter? Because it changes the centre of gravity: > Business models with predictable revenues start to look disproportionately advantaged. > Underwriting-friendly sectors (and founders who can show control + visibility) may get access to capital earlier. > And the market may tilt toward downside protection as much as upside narratives. So the 2026 question isn’t so much “When does the heatwave return?” It’s: "Who benefits from this new structure?" Does a more credit-influenced funding stack accelerate durable scale-ups — or does it quietly narrow the path for riskier, longer-horizon bets? Where do you think the next cycle concentrates: venture-style breakouts, or credit-compatible scale-ups? #Africa #Startups #VentureCapital #PrivateCredit #DebtFinancing #Investment #EmergingMarkets

Africa’s Startup Ecosystem Just Hit a Three-Year High, and It’s Only Getting Started African startups raised $2.65 billion between January and October 2025, marking the strongest three-year run for venture capital on the continent. October alone contributed over $442 million, proving that the momentum isn’t slowing down anytime soon. This isn’t just about numbers, it’s about what they represent.  📍Fintechs scaling across borders.  📍Renewable energy startups solving real infrastructure gaps.  📍Digital platforms reaching millions of young, ambitious consumers. 📍 E-mobility ventures raising record rounds. Nigeria continues to lead the charge. Moniepoint Group raised $90 million, and Spiro pulled in $100 million in e-mobility, the largest in its sector. Across the continent, startups are quietly building companies that could scale globally, and the opportunity is enormous. What people outside the ecosystem often underestimate is this: Africa’s growth is measurable, visible, and accelerating. When you combine: ‼️ A young, hungry population ‼️ Rapid digital adoption ‼️ Underserved markets the size of entire countries ‼️ Increasing investor interest ‼️ Strong diaspora networks pumping skills and capital back in …you get an environment where smart capital doesn’t just grow, it compounds. In 2026, if you’re thinking long-term, Africa is one of the few places where the fundamentals and the future are pointing in the same direction.

📉 Africa’s startup funding didn’t crash. It changed pace. The 2024 Africa Investment Report from Briter breaks down where the money is going, what’s being left behind, and how founders are getting funded when traditional VC pulls away. Here are my key takeaways: 🔶 Disclosed funding hit $2.8B, but half of all deals had no public figures. What looks like a decline may only reflect what’s visible. 🔶 Only seven companies crossed the $100M mark. The rest of the market is moving toward smaller rounds tied to specific themes or sectors. 🔶 Fintech still brings in the most capital, but other sectors are catching up. Climate, mobility, agtech and education are being backed with different kinds of money—mostly grants and debt. 🔶 EVs pulled in more funding than any fintech product in 2024. That’s not because of hype. It’s because asset-heavy models attract lenders, not equity. 🔶 Mid-stage deals are fading. The $500K to $2M bracket is thinning out fast, and there’s no obvious replacement yet. 🔶 Accelerators now play a bigger role than most VCs. They’re where DFIs and donors are routing early capital, especially in high-impact sectors. 🔶 Most of the funding in climate, agriculture and health isn’t commercial. It’s concessional, or structured for policy outcomes, not exits. 🔶 Less than 0.5% of all disclosed capital went to women-only teams. Deal count is rising, but ticket size and follow-on support are still missing. 🔶 Over 75% of funders are based outside Africa. When global risk appetite drops, that becomes a real structural vulnerability. This year is a different funding system with new gatekeepers, different instruments, and a tighter path to scale. #AfricaStartups #ImpactCapital #couchonomics #VC #futureoffinance #payments #fintech #embeddedfinance #digitalassets #futureofmoney NORBr Onalytica Favikon ⁠Global Finance & Technology Network Thinkers360 - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - - 👍 Hit like ♻️ Share it with your network 📢 Drop a comment 🎙️ Check out my podcast Couchonomics with Arjun on YouTube 📖 Get my weekly newsletter on LinkedIn: Couchonomics Crunch 🕺💃 In the MENA region? Join our Fintech Tuesdays community. 🤝 Let's connect! - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - -

Does traditional venture capital work for African SMEs? Most investors expect startups to scale fast and exit within a decade. But in Africa, exits are rare, and short-term funding models don’t align with long-term economic growth. This is the gap that 'Luni' Libes is tackling with Africa Eats. Instead of chasing quick returns, he’s building a sustainable investment model designed for patient capital and real impact. His approach? Holding equity indefinitely. Instead of forcing companies to sell, Africa Eats provides long-term funding, hands-on support, and access to public markets so African agribusinesses can scale at their own pace. In my latest newsletter, inspired by my recent Unlocking Africa Podcast interview with Luni Libes, I break down the key pieces of insight from his unique approach. Key takeaways from our conversation: ➡️ Forget the 10-year exit. African SMEs need capital that grows with them, not capital that pressures them to sell. ➡️ Public stock markets can fund SMEs. SEMX, a new segment on the Stock Exchange of Mauritius, is unlocking liquidity for high-growth businesses. ➡️ Supply chain inefficiencies are the real problem. By cutting out middlemen, Africa Eats has reduced post-harvest losses from 30-40% to just 3-5%. This isn’t just about investing; it’s about reshaping food systems so that they are more sustainable, scalable, and profitable. Want the full insights from our conversation? 📩 Read the full blog & subscribe by clicking the link in the comments below! #ImpactInvesting #SMEGrowth #Agribusiness #Entrepreneurship #Podcast #PodcastHost #Newsletter

The Rise of African Family Offices! “Africa doesn’t need more venture capital — it needs more patient family capital.” For too long, Africa’s investment narrative has been dominated by venture capital — chasing quick exits, high returns, and fast growth. But Africa’s greatest opportunities aren’t found in short-term plays. They’re built through patient, purpose-driven capital that stays long enough to shape industries, empower entrepreneurs, and create generational impact. 💼 VC vs Family-Office Capital Venture Capital: ⚡ Short-term, exit-driven, milestone obsessed. 💸 External LPs, 5-10 year horizons, rapid scaling. Family Offices: 🌍 Long-term, values-driven, intergenerational. 🏗 Built for stewardship, legacy, and real-world impact. In Africa, this shift matters — because building industries like energy, agriculture, healthcare, education, and infrastructure takes decades, not funding rounds. 🧭 Fio Capital’s Approach At Fio Capital, we’ve adopted a buy-and-hold philosophy. We invest patient family capital into core impact industries — creating jobs, driving inclusion, and building sustainable African enterprises. We don’t just invest in Africa. We invest with Africa — alongside founders and families who share a vision of conscious, generational wealth creation. 🌱 From Wealth Preservation to Impact Creation A mature family office isn’t just about protecting assets — it’s about preserving purpose. Wealth without wisdom fades. Stewardship ensures legacy. Africa’s next generation of family offices is redefining success — not in terms of ROI alone, but in return on impact, return on integrity, and return on community. 🏆 5 African Family Offices to Watch 1️⃣ Heirs Holdings (Nigeria) — Tony Elumelu’s family office driving investments in power, finance, and healthcare. 2️⃣ Tengen Family Office (Nigeria) — founded by Aigboje Aig-Imoukhuede & Herbert Wigwe, focused on long-term value creation. 3️⃣ Oppenheimer Generations (South Africa) — Nicky & Jonathan Oppenheimer’s vehicle, investing in sustainability and African industry. 4️⃣ Dangote Family Office (Nigeria) — Aliko Dangote’s global expansion vehicle for African industrial growth. 5️⃣ Mary Oppenheimer Daughters (South Africa / UK) — diversified investments across private equity and real assets. Do you believe family offices should take a more active role in building Africa’s industries — beyond just preserving wealth? 👉 Comment your view below — or tag a family-office leader shaping the continent’s next chapter.

I had a chat with a VC earlier today, and also just stumbled on a post on LinkedIn which made me further ponder the realities of building in Africa. Most of the problems we solve in Africa are Wicked Problems.  Wicked problems are problems that are complex, multifaceted and deeply entangled in culture, macroeconomics and politics. These wicked problems are largely sustained by powerful informal structures (middlemen, cartels, cabals) who have vested interests. On the other side, you have eager founders with a pitch deck and VC money looking to disrupt the market through Platformization and Uberization - I am sure you get the point here. The problem is that Tech is a tool, an enabler, a pillar for scale, efficiency and productivity, but by itself it cannot tackle wicked problems, and this is where tech alone falls short. Also, the VC money expects scale and margin within a short runway without getting involved in the messiness of the hard and wicked problem. So you hear things like Asset-light, SAAS like models, Linear solutions, etc  But the actual frictions in the wicked problems are not just inefficiencies, they are livelihoods. That middleman or cartel isn’t a bug in the system, they are the SYSTEM. Tech can automate a function, but not the social trust that drives informal economies. Tech can map a process, but not the deep narrative of power and survival embedded in that process. So the new problem becomes this: you’re trying to disrupt someone’s business model that is based on disorder, and you want to do it with order and logic.  I will argue that in most African markets, the only way to build real value is to own or control some part of the assets within the ecosystem of the problem you are solving for. Success in most cases means blending tech, boots on the ground ops, and deep informal engagement (you won't see this on the pitch decks). My take is that, as founders building in Africa, we have to approach the journey like soldiers going to a war. The problems we are solving aren't just complex but entrenched in systems where the disorder is the business model. To win in Africa, you need to build with the cartels, not against them. Understand the gatekeepers. Respect the networks. Navigate the informality. The real disruption comes from working within the mess, not pretending it doesn’t exist.

The #hidden #cost of #AI #Adoption in #Africa: Having watched the AI horse bolt out in Africa, especially over the last two years, I am convinced that technical brilliance and competence aren't enough to win this game. Not when 65% lack #access to basic digital infrastructure in Africa. When we talk about AI adoption in Africa (and by extension, the Pacific, where I have worked), we're not just discussing tech gaps. We're confronting deep and concerning realities that run deeper than code, algorithms, and data centers. To be honest about what we're facing, we need to acknowledge our areas of disadvantage: ❌ 65% of our population lacks basic #digital #access. ❌ Only 28% have reliable internet connectivity. ❌ Less than 15% possess advanced digital skills. ❌ Just 3% of global AI talent comes from our regions. And this is what keeps me on edge, seeing the rush to adopt AI in Africa. When we chase AI adoption without addressing these fundamentals, we're ideally building castles in the air. To use a phrase, "We're pretending the emperor has clothes." Here's what I think we are not talking about enough: 1. The #infrastructure #gap We can't power AI dreams on intermittent electricity and patchy internet. Yet we have assets: - 1.4 million kilometers of fiber optic networks - 45,000km of undersea cables - Growing data center capacity But these aren't enough when 60% of our rural areas remain disconnected. 2. The #skills #void We're not just trailing—we're falling behind at an accelerating pace: - Only 1 in 20 developers globally is African. - Less than 5% of AI researchers are from our region. - Technical education reaches just 12% of our youth. 3. The growing #policy #vacuum While the US, China, and the EU race ahead with AI governance and actual original innovations, we're still drafting basic digital policies. We need: - Clear AI regulatory frameworks - Data protection standards - Cross-border collaboration protocols But here's the truth—luckily, we are hearing more of these calls: - We don't need to beg for a seat at the global AI table. - We don't need to chase others' AI dreams. - We don't need to set ourselves on fire to keep the global north warm. What we need is authentic leadership that: ✅ Leverages our unique data advantages. ✅ Builds on our mobile-first innovation. ✅ Focuses on AI applications that solve our challenges, ✅ Pioneers the next frontier of human-centered AI. The question isn't whether we'll #join #the #AI #revolution. The question is, will we lead it in ways that truly serve our people? Turning these challenges into opportunities is Africa's competitive edge, in my opinion. #AIinAfrica #DigitalTransformation #Innovation #Leadership #Inclusion

After reviewing more pitch decks these past few days, I see African fintech founders are still flogging the dead horse that is "banking the unbanked" as a lazy fundraising pitch. From Yaounde to Cape Town, it’s the same story, another mobile wallet, payments app, another promise to bring financial inclusion to the masses. Truth is: most Africans are not unbanked because they lack access; they’re unbanked because they lack income. A new app won’t change that. The Brutal Truth Lack of Disposable Income – People don’t need more fintech solutions; they need more money. Without increased economic productivity, most “financial inclusion” solutions remain useless. Broken Unit Economics – Many fintechs rely on unsustainable VC fueled growth, acquiring “users” who don’t generate revenue. Regulatory Capture & Infrastructure Gaps – Governments protect banks and telcos dominate mobile money. The real bottlenecks are systemic, not just about "access." Startups often underestimate how slow, expensive, and political it is to scale across markets. Real Problems & Better Solutions Income-Generating Fintech – Instead of just moving money, fintech should help people make money. Platforms enabling gig work, SME financing, and export-focused businesses can drive real financial inclusion. A fintech that helps informal traders access larger markets, rather than just helping them "save." Decentralized Credit & Alternative Lending – Traditional credit models don’t work in Africa. Instead: Use supply chain data, mobile behavior, and transaction flows to build more dynamic credit models. Integrate fintech into cooperative lending structures like tontines or village savings groups, where trust already exists. B2B Payments & Trade Infrastructure – Cross-border trade needs work, killing SME growth. Fix it: Build better escrow and invoice financing tools that help African businesses transact across borders securely. Verticalized Fintech in High-Impact Sectors – Fintech should power real economic activity, not just payments. Agritech fintech: Give farmers access to dynamic pricing, supply chain finance, and better insurance. Healthcare fintech: Enable embedded payments and credit for medical services, helping people afford care without predatory loans. Logistics fintech: Provide financing for truckers, warehousing solutions, and real-time supply chain support. Infrastructure-First Fintech – If power, internet, & ID verification are problems, solve those first. Payments without stable connectivity? Build USSD-based financial services. Weak credit infrastructure? Build platforms that help lenders pool risk and share credit data across borders. The era of cheap fundraising gimmicks is over. African fintech must shift from vanity metrics to real impact, solving income generation, trade inefficiencies, and credit access at scale. I'm tired of saying this, founders who build with these in mind won’t need to beg for funding; investors will come looking for them.