In a significant boost to the continent’s industrialization drive, the African Export-Import Bank (Afreximbank), the continent’s premier trade finance institution, has extended a USD 450 M global credit facility to ARISE Integrated Industrial Platforms (ARISE IIP), a pan-African developer and operator of industrial parks.

The overarching agenda of the investment is to drive industrialization across the continent by supporting ARISE IIP in its aims to expand existing industrial parks and Special Economic Zones (SEZs) across multiple African nations, while also providing crucial trade finance support to businesses operating within the ARISE IIP ecosystem.

This funding is part of a larger USD 800 M commitment proposed by Afreximbank to support the ARISE IIP effort in accelerating Africa’s industrialization.

Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, emphasized this vision at the signing ceremony. “Afreximbank strongly believes that IPs and SEZs are veritable tools that Africa can deploy to fast-track industrial infrastructure development and to promote intra-African trade and export development.“

Africa’s industrial infrastructure gap, estimated at USD 100 B annually, has long been a barrier to economic progress. Strategic partnerships like this one are essential in closing that gap and accelerating industrialization Arvind Arora, Chief Treasury Officer at ARISE IIP, emphasized in a statement.

In his words, “The USD 450 M facility represents a major step forward in supporting Africa’s industrialisation efforts. This financing covers critical working capital and capital expenditure needs across various countries, addressing the diverse requirements for industrial development. Africa’s infrastructure investment gap, currently exceeding USD 100 B annually, significantly impacts the continent’s living conditions and its global competitiveness. At ARISE IIP, we are committed to working with strategic partners around the world to bridge this gap and accelerate industrialisation across the continent.” 

Of the total amount of USD 450 M, ARISE IIP will deploy USD 300 M to support the operations of existing industrial parks in Benin, Togo, Chad, Côte d’Ivoire, and Rwanda, while also financing the development of new parks in the DRC, Kenya, Chad, Nigeria, and Côte d’Ivoire.

Another USD 150 M will be deployed in Malawi, where it will help establish an industrial park in Lilongwe and provide trade finance support for the activities of its export trading company under Afreximbank’s Export Agriculture for Food Security initiative, a program designed to strengthen Africa’s agricultural exports and enhance food security.

But this deal is about more than just infrastructure—it’s about unlocking Africa’s economic potential. Industrial parks and SEZs are proven models for driving manufacturing, trade, and job creation, and this funding ensures that more African nations can harness their power.

The impact of this financing is expected to be transformational. Over the next five years, ARISE IIP anticipates attracting 230 new industrial tenants, generating USD 1.7 B in investment, and driving USD 5 B in exports from the new and expanded industrial parks. The benefits will also extend to local businesses, with USD 3.4 B worth of domestically sourced goods and services feeding into these supply chains.

The job creation potential is equally significant. The industrial parks and SEZs are expected to generate 32,000 direct jobs and 138,000 indirect jobs, providing new opportunities for thousands of African workers. More importantly, these jobs will be in high-value industries, helping to diversify African economies and reduce dependence on raw material exports.

The partnership between Afreximbank and ARISE IIP builds on previous successful collaborations. Their partnership has already led to ambitious projects like the USD 5 B Africa Textile Renaissance Plan, aimed at transforming Africa’s cotton industry by creating 500,000 metric tons of processing capacity and generating half a million jobs. Recently, Afreximbank’s Fund for Export Development in Africa (FEDA) also invested USD 300 M in ARISE IIP, reinforcing its long-term confidence in the company’s industrialization strategy.

With this latest funding, ARISE IIP is well-positioned to reshape Africa’s industrial landscape. As more countries embrace the Special Economic Zone model and prioritize value-added manufacturing, the continent is shifting from being a raw materials exporter to a global production hub, a transformation that could redefine Africa’s place in the global economy.

Proparco has provided Badili with a USD 400 K Debt Facility through the Bridge by Digital Africa facility to support its initiative of offering refurbished smartphones. This initiative aims to reduce electronic waste and provide consumers with affordable devices. This financing will enhance smartphone access, improve connectivity, and promote sustainability in Kenya.  

This is a Bridge financing deployed by Proparco. The Bridge facility enables young innovative African companies to benefit from bridging finance of up to 24 months to accelerate their development between two rounds of financing.  

Badili provides an innovative service by repurposing electronic devices for distribution across Africa, thus reducing the environmental impact by limiting the exploitation of natural resources and promoting the reuse of valuable materials. By improving access to affordable technology, Badili opens up opportunities for communities. This project contributes to Proparco’s mission by promoting responsible environmental practices and expanding socio-economic opportunities in Kenya and Africa. It addresses key challenges such as reducing electronic waste, conserving natural resources, and improving digital inclusion for marginalised communities. Increasing smartphone ownership helps foster local economic resilience, offering more people access to essential online services such as mobile payments, education platforms, and telemedicine. By making tools affordable for low-income users, Badili improves digital inclusion and connectivity.  

Rishabh Lawania, Founder and CEO at Badili, mentioned that “Getting validation and trust from PROPARCO is a great boost to the morale of the team that is building a sustainable company that enables Africans to own smartphones for a fraction of the cost of a new one. As we enter into the phase of profitability and expansion into other regions across Africa; it’s a great pleasure to welcome one of the most progressive and supportive DFI in the world as a part of Badili’s billion dollar journey”.  

Fabrice Perez, head of the Venture Capital Division at Proparco, emphasised the transformative nature of this project: “Badili’s initiative to refurbishing smartphones locally in Kenya is a game-changer. This project not only promotes economic resilience but also underscores the importance of sustainability in today’s digital economy. Proparco is  proud to support a venture that directly aligns with our objectives of fostering  environmental responsibility, economic opportunity, and social inclusion in Africa.”  

For Proparco, this collaboration with Badili represents a significant step towards addressing the global challenges of reducing electronic waste and the exploitation of mineral resources while also empowering individuals and communities through increased digital access. The financing highlights Proparco’s commitment to fostering sustainable solutions that align with its broader vision of supporting economic development and environmental stewardship across Africa. Proparco remains dedicated to identifying and supporting innovative projects promoting social impact and ecological responsibility.  

Mia von Koschitzky-Kimani isn’t your typical venture capitalist. She didn’t come up through Silicon Valley or Wall Street, and she doesn’t fit the mold of the perpetually pontificating, tweet-happy investor.

Instead, she built her career across continents, from Europe to Africa, combining strategic consulting with entrepreneurship before settling into the venture capital world.

Today, as Managing Partner at Future Africa; one of the continent’s prominent tech funders, she plays a crucial role in shaping the firm’s investment strategy, bringing a mix of analytical thinking, operational nous, and a pragmatic view on what it really takes to build great companies in Africa.

A Less-Travelled Road to VC

Born in Germany and educated in Switzerland and Harvard, Mia didn’t always know she wanted this path but figures being part of a tremendous growth story has always appealed to her.

“I wanted to be in a region where I could witness and contribute to real change,” she recalls. “Asia was already well on its way. Africa, on the other hand, still had so much potential that wasn’t being fully realised.”

That thinking led her to Nairobi in 2009, where she took an unconventional route: Working for a local entrepreneur instead of following her peers into corporate or banking.

Mia later re-joined Boston Consulting Group (BCG) after a prior stint pre-MBA, helping establish their presence in South Africa and Kenya. But while she loved strategy consulting, she quickly realised that the kinds of large corporations BCG typically worked with didn’t really exist in East Africa yet. “We needed to first build those companies before we could consult for them,” she tells WT.

So Mia decided to build one herself. Her first startup, DukaConnect, was an early AI-powered point-of-sale system designed for informal retailers. “It was before AI was cool,” she says with a laugh.

“Most small shops in Africa don’t have barcodes or structured inventory systems, so we created an image recognition system that could track sales without disrupting their workflow.”

The startup caught the attention of Mastercard, which acquired it in 2018 amid some co-founder differences, giving Mia firsthand experience in scaling and exiting a company.

Running a startup also gave her a front-row seat to the brutal realities of early-stage entrepreneurship. “Raising money is hard. But even harder is making sure your founding team is aligned,” she reflects. “You can have the best investors, the best product, but if the founders can’t work together, nothing else matters.” It was a lesson that would shape her.

Yet, her journey wasn’t solely about entrepreneurship. As familial ties and personal passions took hold—she met her Kenyan husband, raised four children, and even qualified in competitive master swimming—Mia’s perspective on venture capital began to shift.

“I realised that the same care I put into nurturing my family could be applied to startups,” she reflects with a wry smile. “Running a venture fund is a lot like parenting. You must be tough, yet caring. You push for performance while making sure your ‘kids’ have skin in the game.”

Pragmatic Playbook

Mia’s transition to venture capital wasn’t immediate. After selling her startup and following a stint at Mastercard post-DukaConnect acquisition, she joined Persistent Energy Capital, a firm focused on investing in early-stage renewable energy startups.

 “I was drawn to venture capital because it allowed me to combine my love for data and strategic thinking with the thrill of building companies at scale,” Mia tells WT. 

For her, Persistent Energy Capital was a good fit in some ways, but it also revealed a gap in the market. “Climate investing was picking up, but I wasn’t convinced it was the only place capital should go,” she says.

Around the same time, she joined Future Africa’s investment collective, where she met Iyinoluwa Aboyeji of Andela and Flutterwave fame, the firm’s founder. Their partnership was an unlikely but complementary one.

“E is very visionary, very instinct-driven,” Mia explains. “I, on the other hand, love data. I need to see the numbers, how the business works, the financial model.” Their contrasting styles have helped shape Future Africa’s unique investment thesis, balancing bold bets with financial discipline.

Mia also suggested that unlike many venture capital (VC) firms in Africa that rely heavily on Development Finance Institution (DFI) capital, Future Africa takes a different approach. “A lot of impact investors focus on ‘social good’ without thinking about scale,” Mia points out.

“But if a company only reaches 1,000 rural people and can’t grow sustainably, it’s not actually impactful in the long run.” Future Africa’s focus, she emphasises, is on backing high-impact, commercially viable startups that can scale across Africa and beyond.

Hard Realities and Emerging Trends

Mia is quick to acknowledge that the African VC market is maturing, but not without challenges. One of the most striking trends in 2024 is the sharp decline in early-stage funding.

Just three years ago, early-stage capital made up 31% of total funding. Today, it’s down to just 9%, as captured in the recently released 2024 African VC Report, the product of a collaboration between WT and Mia’s firm, Future Africa.

“A lot of early-stage funds have simply died,” she says bluntly. “They were too small for DFIs, didn’t have the track record for commercial investors, and couldn’t raise follow-on capital.”

As a result, accelerator checks are often one of the very few early-stage funding options and many founders have resorted to jumping from accelerator to accelerator, collecting small grants but never really building sustainable businesses, Mia observes, noting that this disconnect led her and Aboyeji to establish Accelerate Africa; an accelerator that prioritises revenue and scale over funding and equity.

“We see it all the time. Startups taking USD 50 K here,  USD 100 K there, but never securing enough capital to build out their model and actually scale,” she says. It’s a cycle that threatens to leave a dangerous funding gap, making it harder for the next generation of great startups to emerge.

Another major shift is the rise of debt financing, particularly in East Africa. “It’s interesting because DFIs, who are supposed to be the biggest risk-takers, are now focusing more on debt rather than equity,” Mia observes. While debt can be a useful tool, she warns that for many startups, it’s still extremely difficult to access at reasonable rates.

Meanwhile, fintech remains the dominant sector, but climate tech is rapidly gaining ground. “DFIs are channelling huge amounts of capital into climate startups, often at the expense of sectors like education and healthcare,” she notes. While she sees the value in climate investments, she cautions against overcorrecting. “We can’t afford to ignore foundational sectors just because climate is trendy right now.”

The Founder-Investor Relationship

Mia’s approach to working with founders is direct, almost parental; a style that has earned her the nickname “Mama Mia” in the Future Africa portfolio. “I push them hard,” she admits. “But I also care deeply about them as people, not just as companies.”

Her approach is a blend of meticulous analysis and intuitive judgment. “I’m not the type to just rely on gut feel,” Mia asserts. “I love digging into the numbers, understanding financial models, and forecasting market trends. But I also know that sometimes the best decisions come from trusting that instinct honed over years of experience.” This duality—analytical rigour paired with an instinct for people and markets—is at the heart of her approach.

Mia believes one of the biggest misconceptions about VC in Africa is that investors are just sitting on piles of money, ready to hand it out. “The truth is, raising a fund is just as hard as raising startup capital,” she explains. “It’s not my money, I have to return it to investors. So when we invest, we need to see real potential for growth.”

One of her biggest red flags? Founders who have put in none of their own money and at the same time demand high salaries before proving their model works and the companies are profitable. “If you’re not willing to put skin in the game, why should we?” she asks.

For all the challenges, Mia remains optimistic about the future of African VC. She believes the next wave of great companies will come from founders who understand financial discipline and build for scale from day one. She’s also excited about underhyped sectors, like creative tech, which has the potential to reshape Africa’s digital economy.

Asked what she hopes to achieve in the next decade, she keeps it simple: “I want to help build an ecosystem that produces globally competitive companies, companies that don’t just survive but thrive.”

With her data-driven approach, shrewd pragmatism, and commitment to founders, Mia does look on track.

A major initiative to fortify Africa’s infrastructure against climate change took centre stage at the Finance in Common Summit in Cape Town, South Africa, where the European Investment Bank (EIB) announced its commitment to the USD 750 M Infrastructure Climate Resilient Fund (ICRF).

Led by the Africa Finance Corporation (AFC) and managed by its asset management arm, AFC Capital Partners (ACP), the fund is designed to embed climate resilience into Africa’s critical infrastructure while mobilizing large-scale investment to address the scarcity of equity capital for greenfield infrastructure projects in Africa.

The Fund leverages a powerful partnership between three major institutions— the European Investment Bank (EIB), Africa Finance Corporation (AFC), and the Green Climate Fund (GCF)—uniting their expertise, capital, and commitment to climate resilience. While the AFC provides infrastructure expertise, the EIB brings financial strength, and the GCF offers first-loss protection, ensuring lower investment risks and broader private sector participation.

As part of this commitment, the EIB pledged USD 52.48 M to the fund. This investment complements a record-breaking USD 253 M from the Green Climate Fund (GCF)—the largest equity investment GCF has ever made in Africa. With additional backing from the Nigeria Sovereign Investment Authority (NSIA) and two major African pension funds, the initiative signals growing confidence in Africa’s ability to lead climate adaptation efforts.

Speaking at the signing ceremony, EIB Vice-President Ambroise Fayolle emphasized the significance of the investment. “The EIB is committed to supporting private sector investment in climate-resilient infrastructure, especially in regions most vulnerable to climate change.”

Bridging the Infrastructure Gap in a Climate-Vulnerable Continent

Africa, the world’s most climate-vulnerable continent, faces an urgent need for infrastructure that can withstand extreme weather events, rising temperatures, and shifting environmental conditions. The ICRF aims to embed resilience at every stage of infrastructure development—from design and construction to operation—ensuring that critical projects can withstand the intensifying impacts of climate change.

To achieve this, the fund will de-risk private investment using blended finance mechanisms, making climate-resilient projects more attractive to investors. It also introduces innovative tools such as climate risk parametric insurance, offering immediate financial relief in the wake of climate-related disasters.

Beyond financing, the fund will offer technical assistance, helping African nations assess climate risks and develop robust adaptation strategies.

ACP’s fund aims to demonstrate that Africa can pursue a climate-resilient and sustainable development path by addressing market failures, mitigating environmental risks, strengthening logistics, trade, and industrialization, and accelerating the continent’s digital and energy transition.

“This fund is crucial for bridging the financing gap for climate adaptation in Africa,” said AFC President & CEO Samaila Zubairu. “By focusing on climate-resilient infrastructure, we are not only securing Africa’s economic future but also creating opportunities for sustainable growth and job creation across the continent. We are proud to partner with the EIB and other investors who share our vision for increasing the impact of climate finance.”

The Path to Unlocking USD 3.7 B for Africa’s Future

The launch of the USD 750 M ICRF is only the beginning. Through strategic partnerships and co-financing mechanisms, the fund is expected to mobilize up to USD 3.7 B for infrastructure projects across Africa, targeting critical sectors such as transport, clean energy, digital connectivity, and industrial development.

Each investment will undergo rigorous climate risk assessments, ensuring that infrastructure projects are climate-proofed and aligned with long-term sustainability goals.

Overall, the ICRF is expected to support 10 to 12 large-scale projects across Africa once operational, each selected for its ability to drive sustainable growth while bridging the continent’s infrastructure gap.

This is expected to create thousands of jobs during construction and long-term employment once projects are operational. It also aligns with global sustainability goals, including the EU’s Global Gateway strategy, the African Union’s Agenda 2063, and the UN Sustainable Development Goals. The EIB’s investment directly supports its climate objectives, which include dedicating 50% of its financing to climate action and 15% specifically to adaptation by 2025.

As climate risks intensify, the Infrastructure Climate Resilient Fund stands as a model for how strategic investment can drive both economic growth and climate resilience.

With strong backing from African and international partners and billions in funding, the initiative is set to boost Africa’s infrastructure landscape, ensuring that the continent’s economic growth is not only sustainable but also resilient to the challenges of climate change.

The European Investment Bank (EIB Global) is putting down USD 75 M to back Africa’s growing digital economy, financial services, and tech-driven businesses.

The investment is going into Helios Fund V, a private equity fund managed by Helios Investment Partners, the world’s largest Africa-focused investment firm.

Announced at the Finance in Common Summit in Cape Town by EIB Vice-President Ambroise Fayolle, signals Europe’s continued interest in fueling Africa’s digital and financial transformation.

The fund is set to back businesses within the financial services, technology and digital infrastructure sectors—from data centres and fibre networks to telecom towers—as well as companies driving innovation in cloud computing, fintech, logistics, health tech, and education tech.

These areas are in line with the priorities outlined in the EU-Africa Global Gateway Investment Package, which aims to enhance sustainable development across the continent through strategic investments in key industries.

Africa’s digital transformation is well underway, but many businesses still struggle to access the capital they need to scale. That’s where Helios comes in. The fund will provide long-term investment to high-impact companies, helping them expand and compete in a rapidly evolving market.

Beyond technology and infrastructure, gender inclusion is also a key focus of the fund. Helios has committed to ensuring that at least 30% of its portfolio meets the EIB’s gender equality criteria, with investments targeting women-led businesses, leadership training, and capacity-building programs. The fund is also a member of the 2X Global network, reinforcing its commitment to advancing women’s economic empowerment across the continent.

The investment is part of EIB Global’s broader push to mobilize private capital for African businesses, working alongside other European development finance institutions (DFIs).

Last year alone, EIB Global invested EUR 232 M in funds across Africa, accounting for 49% of its total fund investments—a clear indication of its increasing focus on supporting private capital flows into African markets.

EIB Vice-President Ambroise Fayolle called Helios a trusted investment partner with deep African expertise, emphasizing that the fund aligns with the EU-Africa Global Gateway Investment Package, which aims to strengthen Africa’s economic resilience.

South Africa’s Deputy Minister of Finance, David Masondo, welcomed the investment, saying that private capital plays a critical role in driving Africa’s economic growth. He highlighted that the funding will help strengthen capital markets, expand financial infrastructure, and mobilize resources for high-impact sectors, all of which are key to job creation and industrial growth.

Private equity has long been a catalyst for economic transformation in Africa, with private equity firms like Helios playing a key role in providing not just funding, but also strategic expertise and technical knowledge to help African businesses scale. With Helios Fund V, the EIB is making a strong bet on Africa’s digital and financial future, ensuring that businesses across the continent have the capital they need to thrive, expand, and compete on a global stage.

In a bid set to accelerate financial inclusion, digital transformation, and food security in South Africa, Summit Africa, a South African-owned impact investment firm, has launched Summit Private Equity Fund II (SPEF II) to help drive financial inclusion, digital transformation, and sustainable food systems.

The new fund kicks off with a USD 20 M (ZAR 355 M) anchor investment from British International Investment (BII), the UK’s development finance institution and impact investor. This commitment comes as part of BII’s broader strategy to support high-impact investments in Africa, particularly those advancing inclusion, job creation, and sustainability.

The fund will invest in small-to-mid market companies across financial services, ICT, and food security—sectors that have a direct impact on South Africans’ daily lives. At least 15% of the fund is earmarked for businesses that directly or indirectly benefit South Africa’s low-income population (LSM 1–6), ensuring that its investments create meaningful social and economic change.

One of the biggest issues the fund hopes to address is South Africa’s growing food security crisis. While millions of people struggle to put food on the table, 11.1 million tonnes of food—one-third of the country’s total supply—is wasted annually, with 68% of that loss due to inefficiencies in processing, storage, and distribution. With South Africa’s population expected to grow by four million people by 2030, the need for sustainable food systems has never been more urgent. SPEF II is stepping in to help bridge the gap by backing businesses working to reduce food waste and improve food supply chains.

Beyond tackling food security, SPEF II has a strong commitment to inclusion. Summit Africa is positioning SPEF II as a 2X Challenge investment, meaning it will help advance opportunities for women in leadership, employment, and business ownership. And by backing black-owned and black-led businesses, it’s tackling another major issue—the funding gap that historically disadvantages black entrepreneurs in South Africa.

Meanwhile, Summit isn’t stopping at the initial USD 20 M investment—it plans to raise an additional USD 22 M (ZAR 400 M) to USD 27 M (ZAR 500 M) from local and international investors, with a target fund size of USD 136 M (ZAR 2.5 B) before capital deployment begins.

Summit Africa has already proven its ability to generate significant post-investment value through its first private equity fund. The launch of SPEF II builds on the success of its first private equity fund, which since 2019 has provided USD 37 M (ZAR 678 M) in funding to over 6,200 SMEs, expanded healthcare services to more than 31,000 patients, and funded tertiary education for 2,000 learners annually—many from previously disadvantaged backgrounds.

The new fund represents the next step in scaling this impact, ensuring that financial inclusion, digital innovation, and food security remain at the forefront of Southern Africa’s economic development.

Summit Partner Nthabiseng Thema called the investment a strong endorsement of Summit’s investment strategy and impact-driven approach. She highlighted that Summit’s integrated ESG and impact strategy ensures that investments not only yield strong financial returns but also contribute to South Africa’s broader economic transformation goals.

This sentiment was echoed by Najwah Allie-Edries, Head of the Jobs Fund, a National Treasury initiative that supported Summit’s first fund. She noted that the Jobs Fund remains committed to fostering economic growth and sustainable social impact through diverse investment strategies that promote inclusive leadership.

The timing of this fund launch coincides with Leslie Maasdorp’s first visit to South Africa as BII’s CEO, highlighting the UK’s commitment to strengthening investment ties with the country. British High Commissioner Antony Phillipson welcomed BII’s commitment, describing the investment as a key step in boosting financial inclusion, job creation, and food security.

With funding secured, a clear investment strategy, and a track record of delivering social and economic impact, Summit Africa’s latest fund is set to play a key role in shaping South Africa’s economic future—one business, one job, and one meal at a time.

Solana blockchain-powered AI and robotics platform VentureMind AI has unveiled its revenue-sharing model in an unprecedented move that aims to align the community with the platform’s success. VentureMind Al is a platform that integrates Artificial Intelligence (AI), robotics and blockchain technology to build a decentralised and scalable ecosystem that empowers users with over 150 specialized Al tools and advanced robotic control interfaces that optimises workflows across sectors like e-commerce, real estate and marketing.

VentureMind CEO Jermaine Anugwom, announced that starting in February, holders of the VentureMind AI utility token (VNTR) will receive 30% of the fees generated by the platform at the end of every month.

VentureMind AI generates fees through its AI and robotics platform subscriptions and merchandise sales. Some of the services offered on the platform include AI tool builder, AI agents, Orion chatbot and many others. Under the new revenue-sharing mechanism, 70% of revenue will go towards business growth, expansion, reinvestment, and future development, while 30% will be deposited into the VNTR Revenue-Sharing Pool for token holders at the end of every month to be claimed by holders depending on the amount of VNTR tokens held at the time on the monthly snapshot.

In his statement, the CEO noted that when we chose to build the VentureMind AI platform on the blockchain and Web3 rails, we committed to upholding and extolling Web3’s true ethos, which includes empowering the community to own a part of the platform. By pledging to redistribute revenue back to the community, we are rewarding participation, conviction, loyalty, and contribution to the long-term success of the VentureMind platform.

In a related development, VentureMind AI has subsequently announced its native token ($VNTR) staking campaign. The benefit of the campaign includes 107% APY paid to eligible stakers who lock their tokens for the maximum lock duration, access to premium tools and features on the VentureMind platform and an Exclusive AI agent NFT packed with benefits and utilities for traders, creators and Web3 builders within the ecosystem.

News of the revenue share and staking campaign announcement have been positively received by the community as the VNTR token stakers number have risen sharply in reaction to the news.

Shifting Trends in Early-Stage Investment in Africa

Over the past decade, Africa’s startup ecosystem has garnered significant traction, yet it remains one of the most challenging landscapes for early-stage investment. In contrast to the U.S.—where venture capitalists readily invest in ambitious ideas with little initial proof—African founders are typically required to demonstrate business viability through actual revenue before they can secure funding.

Even though the market appears to have stabilised overall, the WT x Future Africa Annual VC Report 2024 reveals remarkable shifts in funding stages over the past three years, with investments moving further down the value chain. Early-stage funding, in particular, has taken a hit, with its share of overall funding dropping from nearly one-third to less than 10%. The report notes that commercial capital at the early stage has largely withdrawn, leaving accelerator and grant funding as the primary sources of support—funds that are often too modest to quickly scale a startup into a valuable venture.

To explore the nuances of early-stage investing in Africa, I spoke with Eunice Ajim, the Founding Partner at Ajim Capital. Her fund has backed startups such as Raenest, Dojah, Chpter, Clafiya, and Daba Finance. At just 29 years old, Eunice has already navigated the entrepreneurial journey twice—raising USD 4.2 M for her second company before transitioning into venture capital. Her social media posts frequently provide a candid reality check for founders battling Africa’s challenging funding landscape.

The Journey from Founder to Investor

Originally from Cameroon, Eunice moved to the U.S. for higher education and later ventured into tech entrepreneurship. Her first startup—a marketplace leveraging artificial intelligence—was truly ahead of its time but ultimately did not take off. Undeterred, she co-founded Open Teams, a platform that connected enterprises with open-source developers, successfully raising USD 4.2 M over two funding rounds. Through her experience hiring African developers, Eunice encountered significant challenges, such as limited access to talent, cumbersome cross-border payment systems, and complex compliance requirements. These obstacles sparked her interest in African startups and led her to begin angel investing. By 2021, she had written 10 angel checks, and in 2022, she officially launched Ajim Capital with an initial target of USD 10 M dedicated to early-stage African ventures.

Raising Capital: A Tougher Battle for African Founders & VCs

Eunice is frank about the uphill battle that African venture capitalists face when raising funds. “It took us almost two years to close our fundraise, and even then, we didn’t reach our initial target of USD 10 M,” she explains. Unlike in more mature markets, securing local limited partners in Africa is extremely challenging, which has forced her to look to international investors. As of February 2025, Ajim Capital had deployed capital across 22 companies, and when combining her angel investments, the fund has backed 35 African startups.

One of the major hurdles for founders is the prevailing expectation to demonstrate traction before receiving funding. While U.S. founders can often raise millions based solely on a compelling vision, African entrepreneurs must usually show steady monthly recurring revenue (MRR) to secure investment. “In the U.S., you can raise millions just by selling a vision. In Africa, you need to show sustained monthly revenues before investors take notice,” Eunice remarks.

Good ideas alone aren’t enough when capital is scarce and competition is fierce.

Risk Assessment: What Ajim Capital Looks For

Investing at the pre-seed stage is inherently risky, especially in a market where templates and benchmarks are still evolving. Ajim Capital’s approach is built on a thorough evaluation of several factors. “We don’t just back ideas; we need to see founders who have proven they can execute,” Eunice explains. The fund favours repeat founders or those who have honed their skills at successful startups—she believes that even a failure offers more learning than no experience at all. Storytelling also plays a pivotal role: “If you can’t sell your vision to me, how will you inspire customers, employees, or future investors?” 

Ajim Capital requires that startups generate at least USD 5,000 in monthly recurring revenue before they are considered for investment, reinforcing the notion that tangible progress is paramount. The firm often looks for founders with prior experience at leading African tech companies like Flutterwave, Paystack, or Andela. Beyond evaluating the team, Ajim Capital scrutinises whether the market is truly ready for a particular innovation. While some African founders try to replicate successful U.S. business models, Eunice stresses the importance of understanding local market readiness and consumer willingness to pay. Scalability is also crucial—Ajim Capital seeks startups that have the potential to reach valuations exceeding USD 100 M, ensuring viable exit opportunities through secondary sales, mergers and acquisitions, or public offerings.

Expanding Horizons and Exit Strategies: The Investor’s Endgame

Ajim Capital is also mindful of the need to diversify investments beyond fintech, a sector that has long dominated African VC funding due to its scalability and clear revenue models. Eunice is keen on supporting underrepresented sectors, which has led the fund to expand its reach into B2B SaaS, healthtech, proptech, and developer tools designed specifically for African enterprises. Although fintech still accounts for 60-70% of the portfolio, the fund is strategically pivoting away from saturated segments such as cross-border payments and microfinance, where competition has intensified, in order to unearth new, high-growth opportunities in emerging sectors across the continent.

Exits are a critical component for any venture investor. Eunice outlines three primary exit strategies for Ajim Capital. The quickest route is through secondary sales, whereby the firm sells a portion of its shares in a company after it has secured a significant funding round, providing swift liquidity. Typically, Ajim Capital invests in companies with post-money valuations between USD 3 M and USD 5 M. By the time these startups begin fundraising at valuations of USD 30 M to USD 50 M; their investments have already experienced a tenfold growth—a robust outcome that often leads to a partial or complete exit. Mergers and acquisitions (M&A) serve as another key exit avenue. When investing at around a USD 10 M post-money valuation, the goal is to achieve returns of 20x to 30x upon a successful exit. 

While initial public offerings (IPOs) are an attractive theoretical option, they remain uncertain in the African startup ecosystem. Historically, African IPOs have delivered modest returns, making them a less favoured exit strategy unless a company can change that narrative.

So, Can Africa Become a Unicorn Capital?

While M&A offers substantial exit opportunities, Eunice’s ultimate ambition is for her portfolio companies to reach unicorn status—the pinnacle of return on investment. Despite the many challenges, she remains optimistic that Africa is on the brink of a unicorn wave. Eunice predicts that by 2030, at least 30 African startups will surpass the USD 1 B valuation mark. This vision is inspired by historical trends in the U.S., Europe, China, and India—markets that took seven to ten years of sustained investment before producing a surge of unicorns. She draws comparisons with India, which now boasts over 130 unicorns, and Latin America, which has around 60. With funding for African startups accelerating since 2020, she envisions the emergence of at least four to five unicorns annually in the coming years.

Every single African VC is doing their best

At the same time, Eunice acknowledges that the African VC ecosystem is still maturing, and local investors face their own fundraising struggles. “Every single African VC is doing their best,” Eunice states, acknowledging the dedication and challenges within the investment landscape. Unlike U.S. funds, African VCs must actively sell the continent’s potential to sceptical international LPs, which adds another layer of complexity to securing capital.

Eunice points out that valuations fluctuate wildly. Some startups raised highly overvalued rounds during the 2021 funding boom, only to struggle later with down rounds as investor enthusiasm waned. She stresses the need for valuation discipline to maintain investor confidence in the ecosystem. “Some startups raised highly overvalued rounds during the 2021 funding boom, only to struggle later with down rounds as investor enthusiasm waned,” she explains. This fluctuation in valuations creates additional pressure on both investors and founders to maintain realistic expectations in the African market.

In the end, if capital meets opportunity with a clear, disciplined approach, Africa isn’t just on track to create unicorns—it’s setting the stage for a robust, sustainable investment ecosystem.

The Future of African VC and Startup Growth

Eunice’s journey from entrepreneur to investor encapsulates the complex realities of early-stage investment in Africa. While the funding landscape continues to evolve, challenges remain—from the uphill fundraising battles faced by VCs to the stringent traction demands imposed on founders. Yet, with a thoughtful and adaptive strategy, Africa’s startup scene is poised for explosive growth, potentially delivering dozens of unicorns in the next decade.

For founders, the takeaway is clear: revenue and demonstrable market demand trump vision alone. For investors, the opportunity lies in identifying scalable businesses that extend beyond the well-trodden fintech path, thereby shaping a dynamic and thriving future for Africa’s tech ecosystem.

In a significant boost for small and medium-sized enterprises (SMEs) in Southern Africa, Kholo Capital, a specialist alternative investment firm based in South Africa, has reached a major milestone with the final close of its Mezzanine Debt Fund I at ZAR 1.4 B (USD 76.2 M).

The fund, backed by leading South African institutional investors, aims to provide flexible mezzanine debt financing to businesses across South Africa, Botswana, Namibia, Lesotho, and Swaziland—helping them scale, create jobs, and drive economic transformation.

For many SMEs, securing funding is one of the biggest hurdles to growth. Traditional banks have become more risk-averse, tightening lending criteria and limiting access to capital. Kholo Capital’s mezzanine debt model is stepping in to bridge that gap, offering a tailored financing option that sits between senior debt and equity. This means businesses can secure much-needed growth capital without giving up significant ownership, making it an attractive alternative to traditional equity funding.

The fund is specifically targeting high-impact sectors that contribute to economic and social development, including social housing, healthcare, education, renewable energy, food security, ICT, financial technology, and infrastructure – a strategy that aligns with the United Nation’s 17 Sustainable Development Goals. These industries don’t just drive profits—they create jobs, improve lives, and strengthen local economies.

Kholo Capital’s investment criteria include investing in small and medium-sized businesses generating a minimum ZAR 25 M (USD 1.4 M) EBITDA, offering investment sizes ranging from ZAR 70 M (USD 3.8 M) to ZAR 200 M (USD 10.9 M). The mezzanine debt structure allows for flexible repayment terms, including capital repayment moratoriums, giving businesses breathing room to grow without immediate financial strain.

Beyond financing, the fund has a clear job creation and transformation agenda. Kholo Capital aims to create over 500 new jobs, with each investment expected to generate at least 40 net new positions. More than 50% of the fund’s capital is earmarked for black-empowered businesses, reinforcing its commitment to economic inclusion and sustainable development.

Mokgome Mogoba, Founder and Managing Partner at Kholo Capital, sees this as an opportunity to harness the resilience and potential of the South African economy. He emphasized that this fund is not just about delivering financial returns but also about making a real impact—particularly in rural and township economies.

“We are excited at the opportunity to bring creative funding solutions to the Southern African market and to form long-term sustainable partnerships with businesses over a 4 to 7-year investment horizon, realising not only strong commercial returns for our investors but also providing transformational funding that has a positive ESG impact on businesses and surrounding communities as we also look to boost our rural and township economies,” he said.

His co-founder and fellow Managing Partner, Zaheer Cassim, highlighted the non-dilutive nature of mezzanine debt, making it an ideal solution for family-owned businesses, BEE companies, and SMEs that need funding but want to retain control of their equity. He also pointed out that as traditional lenders pull back, mezzanine debt is becoming a critical tool in helping SMEs access capital.

With a strong pipeline of investment opportunities, Kholo Capital is well-positioned to support business growth, job creation, and economic transformation across Southern Africa. As businesses increasingly look for funding solutions that don’t require giving up ownership, the role of alternative financing options like mezzanine debt is only expected to grow.

Big things are happening in Kenya’s banking sector, and this time, it’s all about green growth and women entrepreneurs. British International Investment (BII), the UK’s development finance institution, has just committed USD 100 M to KCB Bank Kenya, giving it the firepower to expand lending for climate-focused projects and women-led businesses.

At its core, this isn’t just another bank loan—it’s a game-changer for Kenya’s economy. The funds will help KCB back businesses that are making a difference in renewable energy, green transport, and sustainable agriculture—sectors that are key to cutting carbon emissions and building a more resilient economy.

But that’s only part of the story. A major focus of this funding is on women entrepreneurs, especially those in the informal sector, who often struggle to access credit. Through its Female-Led and Made Enterprises (FLME) initiative, KCB is working to break down systemic barriers and restrictive policies that have long held women back from scaling their businesses.

The impact? More women will now be able to get the financial support they need, helping them grow their businesses, create jobs, and drive economic progress.

This investment also qualifies under the 2X Challenge, a global initiative focused on boosting gender diversity in finance and business leadership—a cause that BII has been actively championing.

Chris Chijiutomi, MD and Head of Africa at BII sees the potential here, emphasizing that Kenya remains a key market for their investments, and this deal is all about scaling climate finance and unlocking more opportunities for women-led enterprises.

For KCB Bank Kenya, this is another bold step in its commitment to sustainability and inclusion. Annastacia Kimtai, KCB Bank Kenya Managing Director, sees this as a huge win for expanding climate financing while also strengthening the bank’s position in the market. She stated that this facility will allow the bank to scale its support for climate-aligned businesses and women-led enterprises while strengthening its overall capital position.

The UK Government is also fully backing the move. Daniel Wilcox, Economic Counsellor & Head of Prosperity and Climate at the British High Commission in Nairobi, acknowledged that access to finance remains one of the biggest roadblocks for Kenyan businesses and welcomed the partnership as a real solution to bridging the gap.

This isn’t just a one-off initiative. KCB has been at the forefront of supporting women entrepreneurs, committing KSh 50 B annually to businesses owned and run by women. Since 2022, the bank has already extended KSh 150 B in funding under this initiative, fueling entrepreneurship and strengthening the economy.

Now, with BII’s USD 100 M million backing, KCB is set to drive Kenya’s green transition while ensuring women-led businesses get the financial muscle they need. This is more than just investment—it’s economic transformation in motion.

As KCB rolls out these funds, all eyes will be on how it impacts Kenya’s businesses, climate sector, and financial inclusion.