The Agence Française de Développement (AFD) has committed an additional EUR 3 M to the Africa Digital Financial Inclusion Facility (ADFI) in a move that signals France’s continued support for expanding access to digital financial services across Africa.

This new contribution brings AFD’s total support for ADFI to over EUR 5 M. The funds aim to support innovative, technology-driven financial tools that can reach people typically excluded from traditional banking. These include services such as digital credit, savings, insurance, and mobile payments—tools that are increasingly essential for economic resilience and growth across the continent.

The funding will support ADFI’s efforts to develop and scale digital solutions that connect underserved populations—particularly women, youth, and small businesses—with credit, insurance, and other essential financial tools.

Despite progress in digital infrastructure and mobile money penetration, nearly half of Africa’s adult population remains excluded from the formal financial system. ADFI targets this gap through strategic investments in digital public infrastructure, policy and regulatory frameworks, and product innovation, with a cross-cutting focus on gender inclusion and institutional capacity building.

Launched in 2019, ADFI was established by the African Development Bank in partnership with AFD, the Bill & Melinda Gates Foundation, and Luxembourg’s Ministry of Finance.

Structured as a blended finance facility composed of a multi-donor Special Fund, ADFI is comprised of a USD 100 M target envelope and USD 300 M in partner grant money and debt-funding from the African Development Bank.

Since its inception, the initiative has grown into a multilateral platform, later joined by France’s Ministry for the Economy and Finance, the Women’s Enterprise Finance Initiative (We-Fi), and India’s Ministry of Finance.

Together, these partners are working to make digital financial services more accessible, secure, and affordable, particularly in rural and climate-vulnerable areas that traditional banking systems have struggled to reach.

AFD expects its contribution to help scale projects that have demonstrated early success, with a focus on replicability across countries and regions. “Developing digital financial services is a key pathway to reach financially excluded populations in Africa,” said Audrey Brule-Françoise, Head of AFD’s Financial Systems Division. “Through our continued collaboration within ADFI, we aim to promote access to digital financial services that are tailored to diverse needs and delivered in a responsible manner.”

The African Development Bank sees this funding as a timely boost. “Digital financial solutions are key to improving the quality of life of people in Africa and reducing the gender access to finance gap,” said Mohamadou Ba, Manager of the Bank’s Financial Intermediation and Inclusion Division. He added that the Bank plans to expand ADFI’s reach and deepen its impact, especially in areas most affected by poverty and climate vulnerability.

AFD’s involvement in ADFI is part of a broader commitment to international solidarity and sustainable development. With projects in over 115 countries, AFD plans to continue supporting public institutions, NGOs, and private actors working to reduce inequality and improve access to opportunity. Its support for financial inclusion is aligned with its strategic focus on social equity and climate resilience.

As Africa’s digital transformation, AFD and its partners aim to accelerate the progression by closing the inclusion gap, unlocking potential, and making financial systems more accessible, equitable, and future-ready.

Swedfund, Sweden’s development finance institution, has committed EUR 26 M (USD 28.2 M) in AfricInvest’s Financial Inclusion Vehicle (FIVE), an investment vehicle designed to strengthen financial institutions across Africa and bring banking services to people and businesses who’ve been left out of the formal financial system.

The investment is part of Swedfund’s broader strategy to promote inclusive finance by strengthening the capacity of local financial institutions.

It comes after the institution also announced a EUR 15 M (USD 16.3 M) investment in AfricInvest’s Small Cap Fund, which targets small and medium-sized enterprises (SMEs) across the continent. Together, these investments reflect a growing push to unlock capital for underserved entrepreneurs and deepen long-term economic inclusion in Africa.

FIVE was launched by Pan-African private equity firm AfricInvest in 2017 to support Tier II and Tier III financial institutions, those that often serve SMEs, unbanked populations, and low-income individuals.

Swedfund’s latest investment into the platform aims to increase access to financial services for underserved individuals and small businesses, with a focus on digital innovation, economic empowerment and inclusion.

The gap in access to finance across Africa is still wide. Only about one in five people has access to formal banking. For the rest, a lack of financial services means limited opportunities to grow a business, save money, or weather unexpected financial shocks.

Through FIVE, Swedfund’s investment aims to close that gap by supporting financial institutions that are expanding outreach and are using inclusive traditional and digital-first models to reach more clients, especially those in underserved communities.

By strengthening the capital base of these financial institutions, including banks, insurers, and fintechs, Swedfund aims to catalyse more inclusive financial ecosystems, driving job creation and economic growth across the continent.

“Improving access to financial services is a key lever for driving growth in underserved communities,” said Jakob Larsson, Senior Investment Manager at Swedfund. “Our investment in FIVE supports the development of scalable, innovative solutions that can reach more people and strengthen local economies.”

Beyond expanding access, the investment also supports FIVE’s commitment to gender equality and women’s empowerment by embedding inclusive practices that benefit women across its portfolio. companies and communities.

FIVE is supported by a broad coalition of European and African development finance institutions, including agencies from Norway, Denmark, the Netherlands, Germany, and Belgium, as well as African multilateral development banks and pension funds.

The platform is designed to be both catalytic and sustainable, focusing on financial institutions that can deliver lasting impact at scale.

Verdant Capital has made an additional investment of USD 4.5 M in LOLC Africa through its Verdant Capital Hybrid Fund, bringing its total investment in the company to USD 13.5 M.

This latest round follows Verdant’s initial investment of USD 9 M completed in June 2023. Both tranches are structured as holding company loans, designed to expand LOLC Africa’s flexibility in allocating capital across its network of subsidiaries in Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.

The goal is to strengthen the balance sheets of its local subsidiaries, support their lending capacity to micro, small, and medium enterprises (MSME), and accelerate growth in markets where access to finance remains limited.

LOLC Africa is a subsidiary of LOLC Group, a Sri Lankan conglomerate with operations spanning financial services, agriculture, renewable energy, and more. Having built a strong presence in Asia for decades, LOLC entered the African market in 2018 by acquiring a controlling stake in Fina Trust Microfinance Bank, one of the leading microfinance institutions and has since established non-bank financial institutions across several countries.

Its model is centered on serving the “bottom of the pyramid,” expanding access to financing and deposit services for those typically left out of the formal financial system.

By targeting micro, small and medium-sized enterprises (MSMEs), the investment aims to support more than just business credit but also enable entrepreneurship, generate employment, and support income stability in underserved communities.

The investment comes at a time when many African MSMEs continue to face limited access to credit, often relying on informal finance or personal savings to fund operations. Financial inclusion remains a policy priority across the continent, and non-bank financial institutions like those operated by LOLC play a growing role in filling credit gaps.

The new investment is expected to help LOLC Africa expand the lending activities of its subsidiaries and strengthen their capital bases. This is especially important as the company looks to scale its operations, not just in existing markets but also in new countries where demand for MSME financing continues to grow. The funding supports both commercial ambitions and LOLC’s broader mission of promoting financial inclusion, creating jobs, and stimulating economic growth in low- and middle-income segments across the continent.

Beyond funding, Verdant has also offered support for the group through its Technical Assistance Facility. This support includes financing social ratings and client protection pre-certifications for subsidiaries in Zambia and Egypt, with further Technical Assistance initiatives in the pipeline.

For Verdant Capital, the investment in LOLC Africa aligns with its own strategy of selecting top-performing operators in each sector and delivers exposure across multiple African markets. The Fund’s investment is also yielding a return aligned with the Fund’s return target.

The transaction was advised by Suits & Advisors (“S&A”), which acted as financial advisor to LOLC.

The deal marks another milestone in LOLC’s African expansion and strengthens the long-term partnership between the two institutions.

In rural Kenya, it used to be normal to go without power. No electricity meant no cold storage, no internet, and no way to charge a phone. That started to change when M-KOPA, a local fintech, began offering pay-as-you-go solar kits and smartphones to low-income households who may not have access to traditional credit.

Efforts like this require some financial muscle, and for M-KOPA, it didn’t come from the government or local partners; it got some tailwind from a USD 51 M investment by the U.S. International Development Finance Corporation (DFC). Of course, M-KOPA was already scrapping and solving real problems, but that funding was instrumental in helping M-KOPA expand electricity and smartphone access to off-grid communities, schools, clinics, and small businesses.

These kinds of stories aren’t rare, there are similar fingerprints by the DFC all over the continent: a USD 90 M equity investment in Cassava Technologies to drive Africa’s digital transformation; a USD 100 M loan provision to Nigeria’s First City Monument Bank to support women-led businesses, another USD 30 M to AgDevCo for agricultural lending, a USD 200 M to Nigeria Mortgage Refinance Company, and USD 140 M for a wind plant in Egypt—plus many other developmental and infrastructure projects.

The thing is, over the past five years, the DFC has quietly become one of Africa’s most important financial partners, backing over USD 13 B across 300 projects and catalysing investment in the digital, finance, energy, healthcare, and infrastructure sectors.

Beyond Africa, it stood as one of America’s most potent tools in fostering global development through private-sector investment. With a massive USD 50 B portfolio, it played a critical role in powering economic growth in low- and lower-middle-income countries like those in Africa. But that momentum has come to a sudden, unsettling stop. Investment from the DFC has pretty much gone silent.

A deafening silence that coincided with U.S. President Donald Trump’s return to the White House in January 2025. Sure, the agency announced over USD 4 B in global investment approvals for the first quarter of Fiscal Year 2025 (ended December 2024), but a closer look at DFC’s active investment database reveals a curious absence of investment since January 15.

It has become all too apparent that a funding freeze from the DFC has taken hold, and Africa, once a central focus, could be drifting out of the agency’s frame.

There is unease. Deals that would’ve unlocked local hiring, product launches, or cross-border expansion are suddenly stuck in limbo. Private equity and venture capital firms also face the prospect of shifting their portfolio strategy as the ripple effects manifest.

An Administration That Never Believed in Foreign Aid

Trump’s hostility toward international aid has been no secret. “America First” wasn’t just a campaign slogan; it became the defining principle of his foreign policy.

He viewed foreign assistance as an unnecessary drain on U.S. resources, often equating it with wasteful spending that benefited other countries at the expense of American taxpayers.

From his first day in office, he wasted no time in slashing billions in foreign aid. On January 20, his administration launched an aggressive 90-day pause and review of every U.S. foreign assistance program, with the goal of determining which should be cut entirely.

Driving that campaign is ally Elon Musk’s so-called Department of Government Efficiency (DOGE), a newly created division tasked with gutting bureaucratic “waste” and helping the U.S. achieve financial efficiency. But that’s only part of the story. In truth, it has launched a full-blown war on foreign investments.

Trump and Musk’s “America First” approach has led to a dramatic pullback from global commitments that have resulted in billions of dollars in eliminated aid in their push to cut the spending of the federal government.

Foreign investment programs such as the United States Agency for International Development (USAID) were some of its first casualties, seeing their budgets slashed to levels not seen in decades and throwing global humanitarian relief efforts into chaos.

In March 2025, a 281-page internal report shared with lawmakers listed 5,341 USAID-funded projects set for termination, totalling nearly USD 76 B. Much of that was earmarked for long-term African development work, leaving NGOs and governments that relied on those partnerships scrambling. DFC, which had seemed insulated from the worst of these cuts, has also been caught in the crossfire.

Unlike USAID, which primarily provided grants and direct humanitarian aid, DFC operated more like a bank. Its model leaned on private-sector capital to drive sustainable development, offering loans, guarantees, and political risk insurance to support projects in infrastructure, clean energy, and small business development.

It was created through the 2018 BUILD Act, which merged the Overseas Private Investment Corporation (OPIC) with several USAID offices, with the goal of making U.S. foreign development self-sustaining.

For years, that model functioned. By the end of 2024, DFC had deployed over USD 3 B in sub-Saharan Africa alone, including over USD 700 M in the final two quarters of the year. Even as late as October 2024, it continued its expansion in Africa, opening a new regional office in Côte d’Ivoire, signalling its commitment to expanding in the region.

In theory, one would assume a self-sustaining, investment-driven model would appeal to Trump’s business-minded administration, as it was less about giving away money and more about making strategic investments. But behind the scenes, the administration was already laying the groundwork for a dramatic shift in the DFC’s priorities.

An Executive Order That Could Reshape DFC’s Future

With DFC’s notable absence from the global investment landscape already causing a stir, a full-on strategic pivot finally came on March 20, 2025, when Trump signed an executive order that reorients the agency’s focus from international development to boosting the domestic production of critical minerals.

By invoking emergency powers, the order specifically redirects DFC funding to support U.S.-based mining and mineral extraction projects under the Defense Production Act. The order dictates that within 30 days, the agency’s leadership, alongside the U.S. Secretary of Defense, must propose a plan to establish a mineral production fund, effectively abandoning DFC’s original purpose.

Once focused on financing economic growth in low-income countries, DFC will now prioritise loans, guarantees, and political risk insurance for domestic projects.

There are also discussions within Trump’s administration about consolidating U.S. development finance institutions, according to Politico citing a leaked memo. The memo suggested that the Millennium Challenge Corporation and the U.S. Trade and Development Agency could be merged under the DFC to make U.S. foreign development more self-sustaining.

Meanwhile, other reports note that some officials are exploring turning DFC into a sovereign wealth fund. This comes after Trump’s executive order in February directing the Treasury and Commerce secretaries to develop a plan for such a fund within 90 days.

That would mean fewer checks, more executive control, and a fundamental shift away from DFC’s broader influence in international private sector development.

For now, Congress holds the power to intervene. DFC is up for reauthorisation this year, and lawmakers could push to return the agency to its original mission. But discussions have yielded little clarity. And the administration doesn’t appear to be backing down.

The Consequences of DFC’s Inaction

While the policy debates rage in Washington, the reality on the ground is already changing. The DFC, which has long been a key funding lifeline for African ventures, is leaving a notable absence.

Across Africa, DFC-backed projects are on hold. Fund managers (private equity and venture capital) are facing indefinite delays on approved loans, predictably throwing deals into question. The uncertainty also hits small business lenders, infrastructure developers, and clean energy initiatives.

To put the scale in perspective, in just the final two quarters of 2024, DFC investments in sub-Saharan Africa had topped USD 700 M. Now, that stream has dried up. And the timing couldn’t be worse.

Africa is already walking a tightrope, navigating a tough macroeconomic climate. Venture capital funding into the continent has continued to drop, falling to just over USD 2 B from its USD 4.3 B peak in 2021 and USD 3.6 B in 2022, according to the WT Annual Report 2024. That’s nearly half of what flowed in the years before.

Early-stage startups are especially exposed. Once-eager investors are now more cautious about deploying capital into frontier markets. It’s in vacuums like this that development finance institutions (DFIs) like the DFC usually step in with patient capital. They’re designed to move counter-cyclically to keep investment flowing when the private sector pulls back.

In long-term plays like energy and infrastructure, where returns take years, DFIs are often the only players with enough risk appetite to get things moving. So when one of the biggest players suddenly vanishes, the effect is seismic.

Moreover, African infrastructure and energy investment needs are estimated at USD 110-170 B per year, with a financing gap of USD 68–108 B, according to the African Development Bank. While other notable DFIs like Proparco, Acumen, IFC, and BII remain active, DFC’s absence will leave a huge vacuum.

Without U.S. support, many African governments and project developers are turning to whoever is still lending, and that’s often China. Per a Reuters report, in 2024, China pledged over USD 51 B in new African infrastructure funding over three years. Chinese state-owned banks are now offering fast financing, albeit often with stricter terms and higher long-term debt risk. But when capital is urgent, speed wins.

A Moment of Reckoning for African Founders

As the dust settles on Trump’s development finance shakeup, it appears the U.S. is at a crossroads in its role in global economic development, and Africa is directly in its crosshairs.

The DFC funding pivot points at a shift in America’s priorities, and the longer the U.S. remains disengaged from global finance, the harder it will be for economies significantly dependent on its support.

Even before the DFC freeze, the mood was shifting. By the end of 2023, about 30% of African startup deals had some involvement from U.S.-based investors, down from about 40% just two years earlier, according to data found in the Venture Capital in Africa Report from the AVCA. When the sudden halt in U.S. development finance is factored in, that downward trend might well become a freefall.

For African founders, this moment represents a significant reckoning. Startups and small businesses that once thrived from impact-driven funding from the U.S., particularly in sectors like fintech, agritech, and healthtech, face new uncertainty.

If U.S. investment becomes more commercially selective, the availability of risk-tolerant capital for the already struggling early-stage landscape could shrink. Those with years-long paths to profitability—especially those in rural services or public-good sectors—will have to tighten their models, pivot, or pause altogether.

This could result in a domino effect that affects Africa’s low-income population. The United Nations Economic Commission for Africa has repeatedly stressed that a drop in foreign direct investment (FDI), especially in core sectors, could mean slower growth, job losses, and rising poverty.

Filling the Gap

Still, it’s not all bad news. As Global players are pulling back, local DFIs and private equity firms are showing what it looks like to lead from the front and are making efforts to plug the funding gaps.

Take the African Development Bank (AfDB), a multilateral development finance institution focused on Africa. It has deployed a mix of financial instruments, including loans, grants, and equity investments. In 2023, the bank approved USD 8.2 B in project financing. It also invested up to USD 2.73 B in just Q3 2024 alone, putting into perspective the scale of its growing influence.

Other notable names like the African Export-Import Bank (Afreximbank), Africa Finance Corporation (AFC), Development Bank of Southern Africa (DBSA), and East African Development Bank (EADB) are also beginning to play vital roles in sectors like agribusiness, renewable energy, and trade finance at regional and national levels.

None of this fully replaces the weight or reliability of U.S. development finance, but it reflects that when the spotlight moves, others can take the stage. Still, for African economies already juggling currency depreciation, rising debt, and climate shocks, losing a partner like the U.S. is not only inconvenient but also costly.

Thousands of small businesses in Cameroon are set to gain greater access to financing, thanks to a new partnership between the International Finance Corporation (IFC), a global development institution and Afriland First Bank Cameroon, a player in Cameroon’s financial sector.

The partnership aims to provide up to USD 60 M in funding to help businesses expand, innovate, and create jobs.

With USD 20 M coming from IFC’s own funds and USD 40 M mobilized from other lenders, this initiative is set to bridge the financing gap that has long held back SMEs, particularly those led by women. A key component of the effort is the Women Entrepreneurs Opportunity Facility (WEOF), which will provide performance-based incentives to encourage more lending to women-led businesses.

This partnership goes beyond just financial support. IFC will also provide advisory services to Afriland First Bank, strengthening its ability to serve SMEs by enhancing its risk management framework and developing new financial products tailored to the needs of small businesses. By addressing these structural barriers, the collaboration aims to create a more inclusive and dynamic business environment in Cameroon, giving entrepreneurs the resources and confidence to expand their operations.

Afriland First Bank stands as a leader in Cameroon’s financial sector, with a strong commitment to business financing. As of December 2024, its customer loans totaled CFAF 988.17 B (USD 1.7 B), reflecting its strategic role in economic development within Cameroon and the broader CEMAC sub-region.

The bank offers innovative financial solutions tailored to individuals, institutions, and businesses of all sizes, supported by an extensive network of branches and international correspondents. Recognizing the essential role SMEs play in economic progress, Afriland First Bank has developed specialized mechanisms and platforms to connect businesses in complementary sectors and foster collaboration. Through forums for knowledge-sharing and networking, the bank continues to reinforce its commitment to driving growth and social progress in Cameroon.

For Afriland First Bank, this initiative with IFC aligns with its vision. Célestin Guela Simo, CEO of Afriland First Bank, emphasized the transformative potential of the partnership, highlighting that SMEs are the backbone of Cameroon’s economy. He expressed enthusiasm about working with IFC to scale up financing for small businesses, enabling them to play a larger role in national development.

His sentiments were echoed by Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, who reaffirmed IFC’s commitment to private sector-led growth. She underscored that empowering SMEs will not only foster innovation but also generate employment and strengthen economic resilience.

The initiative also fits into with IFC’s broader strategy for Cameroon, which focuses on enhancing digital infrastructure, strengthening domestic value chains—particularly in agriculture—and addressing urban infrastructure challenges, including renewable energy solutions. By working to improve the overall business environment, the IFC seeks to accelerate Cameroon’s transition to a more climate-resilient and diversified economy.

IFC, a member of the World Bank Group, is the largest global development institution dedicated to the private sector in emerging markets. It operates in more than 100 countries, leveraging its capital and expertise to create opportunities and drive sustainable economic growth. In the fiscal year 2024, IFC committed a record USD 56 B to private companies and financial institutions, underscoring its role as a key player in global development.

With enhanced financial access and strategic support, this partnership is set to unlock opportunities, fuel business expansion, and build a stronger, more resilient economy for Cameroon.

When Nour Emam, Co-Founder and CEO of Egyptian femtech platform Daleela by Motherbeing, recounts a moment from her entrepreneurship journey, it encapsulates the daily deep-seated challenges female founders face.

“One moment that sticks with me was during a pitch where, despite solid traction and user growth, an investor asked, ‘But how do you know Arab women even want to talk about these topics?’” she tells WT.

This loaded question wasn’t just about market validation, Emam says, but a subtle reminder of the systemic bias that boxes women, particularly those daring to disrupt sensitive sectors like women’s health.

For Emam, a notable entrepreneur, doula and reproductive health activist whose company confronts taboo topics around sexual and reproductive health among women, the question was less about risk assessment and more about challenging centuries of silence and stigma surrounding women’s bodies.

Africa is paradoxical. It leads the world in female entrepreneurial activity, with women representing 26% of total entrepreneurial endeavours. And yet, female-led startups remain grossly underfunded. In 2024, while male-led ventures attracted around USD 2 B, per one research, female-led startups secured a mere 2% of that.

Another research estimates a staggering USD 42 B funding gap for Africa’s women entrepreneurs. Such figures paint a picture of a market rich in potential yet strangled by entrenched biases and an ecosystem that still largely sidelines women.

More than a Capital problem

Akinyi W. Ooko Ombaka, Head of Portfolio Success at Madica, explains that the challenges are rooted in a web of intersecting issues. “The challenges faced by women-led businesses intersect and compound across multiple channels,” she notes.

Investor bias, she explains, often pigeonholes female founders into ‘traditional’ sectors like education or care economies, which are viewed as less catalytic for rapid growth. Yet, beyond the bias, Ombaka argues that the real game-changer is access to networks; be it mentorship, sponsorship, or robust community connections.

“From a strategic and cultural perspective, we’ve failed to address these challenges as an investment community because our interventions do not take diversity, equity and inclusion seriously. Tactically, we haven’t invested the resources to back these founders in a meaningful way,” she adds.

Madica’s approach, however, offers a counter-narrative. With a portfolio that includes over 50% female founders, Ombaka says Madica has honed a rigorous due diligence process and crafted an 18-month support program tailored to each founder’s specific needs. But she candidly admits that such an intensive, hands-on approach is resource-heavy, and few funds have the capacity—or the will—to replicate it.

Ombaka challenges top African VCs to radically change their playbook. “The numbers already demonstrate that having diverse teams and investing in women-led businesses is not only smart but also profitable,” she says.

“Investing in African businesses requires more—more time, more capital, more support. If you aren’t willing to play the long-term game, you’re in the wrong place or you haven’t found the right partners to do it.”

For Ombaka, acknowledging what hasn’t worked is the first step toward actionable change. “We must be actionable in our approach by sharing more instances of what’s working and tag-teaming best practices to build upon,” she stresses, hinting at a collaborative future where co-investment and founder-first approaches become the norm.

A Founder’s Battle

For Emam, the journey is as much about building a community as it is about securing funding. Reflecting on the investor’s question about Arab women’s willingness to engage with taboo topics, Emam is unapologetic.

“If I were a man building a crypto app or a logistics platform, I wouldn’t be asked to prove that my audience was ready for innovation. But as a woman building for women, I’m expected to justify our right to speak openly about our health,” Emam asserts. Such biases, she adds, are not merely annoying but actively stymie progress and reinforce an inequitable status quo.

Emam’s response to these challenges is both practical and empowering. “Build your audience before your investor deck,” she advises emerging founders. By fostering a community and accumulating tangible user engagement, female founders can create an unassailable narrative that data and human stories alike support.

Her journey with Daleela by Motherbeing, which uses an AI-powered assistant to empower Arab women in managing their sexual and reproductive health, is a testament to this strategy. Her approach has not only built credibility but also forced investors to confront their preconceptions with hard evidence: millions of views, thousands of comments, and robust conversion rates that tell a story of significant market demand.

Emam, recognised as one of the BBC 100 Most Influential Women of 2024, is also pragmatic about the current VC ecosystem. “The short answer is: we need both,” she explains when asked whether women should entirely retreat from the traditional VC model.

While alternative funding ecosystems—bootstrapping, revenue-first models, community-driven funds—are proving their worth, abandoning the VC route altogether would mean ceding influence in shaping the future of tech investment. Instead, the goal, she believes, should be to redesign the table.

“That means more women writing checks, more funds prioritising gender-lens investing, and more founders holding VCs accountable for their pipelines,” Emam suggests.

Numbers That Speak

Broader industry data underscore these personal accounts. African startups have seen funding declines across the board with male-led ventures continuing to pull in billions, while female-led initiatives languish.

Studies from Disrupt Africa reveal that out of nearly 2,600 startups surveyed, only 17.3% had at least one female co-founder, and a mere 11.1% were helmed by a female CEO. In Nigeria alone, only 10% of funded startups were female-founded, receiving just 0.7% of the total deal volume in a market worth USD 600 M.

The disparity becomes even starker when dissected further. Female CEOs received just USD 48 M in funding in 2024, per The Big Deal, while solo male founders raised USD 430 M and all-male teams secured USD 1.6 B.

Such figures are not isolated anomalies but part of a broader trend that sees less than 5% of Africa’s tech funding going to all-female founding teams over nearly a decade. These statistics reveal an ecosystem where impressive entrepreneurial activity by women is systematically undermined by inadequate access to capital.

However, compared to other regions, Africa does present a slightly better picture. A 2024 Pitchbook report noted that companies founded solely by women in the US and Europe received only 2% and 1.8% of total capital respectively, while Africa’s figure hovered at 8.2%. This relative advantage, however, does little to mask the overall systemic exclusion that women face globally.

Toward a More Inclusive Future

The conversation around gender funding gaps in Africa’s tech ecosystem is not solely about lamenting the status quo. It is also a call to action for all stakeholders, from investors to founders to policymakers.

Initiatives like Madica, which offer comprehensive support and clear investment theses focused on underrepresented founders, demonstrate that change is possible when the right mix of resources, mentorship, and strategic clarity is in place.

Both Ombaka and Emam stress that the road to parity is paved with honest introspection and radical rethinking of existing models. They opine that investors must be willing to reallocate resources, share success stories, and challenge their own biases, while founders are encouraged to leverage community support and build compelling narratives that defy stereotypes.

As Emam succinctly puts it, “In 2025, storytelling is a growth strategy. Don’t just pitch investors—create content, own your voice, build public proof. That credibility compounds faster than you think.”

The stakes are high. With studies estimating that achieving gender parity could boost global GDP by up to USD 12 T, the economic imperative to empower female entrepreneurs is undeniable. The challenge is to transform these figures into actionable change.

After two years of fundraising, Inspired Evolution, a Pan-African private equity firm specializing in clean energy infrastructure and energy transition investments, has closed its Evolution III Fund at USD 238 M, marking a major step forward in Africa’s clean energy transition.

The fund’s final close, completed on March 3, 2025, strengthens the firm’s position as a major player in the continent’s energy transition and underscores growing investor confidence in Africa’s renewable energy potential.

The journey began in March 2023, when Evolution III held its first close at USD 199.4 M, backed by leading institutional investors, including the European Investment Bank (EIB), FMO, the African Development Bank (AfDB), Finnfund, and Swedfund, among others. A year later, in May 2024, a second close brought in ten new investors, including the Mauritius Investment Corporation (MIC) and a group of impact-focused backers through Align Impact. The momentum continued into 2025, with Oesterreichische Entwicklungsbank (OeEB) and the International Finance Corporation (IFC) adding their commitments in the final stretch.

With the fund fully subscribed, Evolution III has already deployed capital into two major renewable energy players. In September 2023, it made its first major investment in Red Rocket Group, a renewable energy independent power producer (IPP) focused on wind, solar, and hydro projects across Africa, particularly in South Africa. Alongside its co-investors, Evolution III acquired 75% of the company, injecting USD 160 M to expand its 10+ GW pipeline of renewable energy projects.

The fund’s second investment came in February 2024, when it took a minority stake in the majority holding consortium of Equator Energy Ltd, East Africa’s leading provider of commercial and industrial (C&I) solar solutions. The investment is set to help Equator Energy scale its operations to 300 MW over the next four to five years, expanding access to clean power for businesses across the region.

For investors, the need to support Africa’s clean energy transition is becoming increasingly urgent. Cláudia Conceição, IFC’s Regional Director for Southern Africa, pointed out that the continent’s rapid population growth makes expanding access to sustainable power a top priority. “Africa will soon account for one-fifth of the world’s population, and the demand for energy will only rise. Investing in clean power is not just an environmental necessity—it’s an economic imperative. Our investment in Evolution III aligns with ‘Mission 300,’ the World Bank Group’s initiative to accelerate electrification in Africa.”

The same sense of urgency is driving European development banks to commit more resources to Africa’s energy future. Sabine Gaber, Executive Board Member at OeEB, emphasized the need for long-term, climate-focused investments. “Developing economies are bearing the brunt of climate change. That’s why we are strengthening our commitment to green finance in Africa. Inspired Evolution has a proven track record, and we’re proud to partner with them to help scale renewable energy solutions across the continent.”

For Inspired Evolution, the success of Evolution III is a reflection of both the confidence investors have in its strategy and the growing recognition that Africa’s energy landscape is at a turning point. Wayne Keast, Co-Founder and Managing Partner, called the USD 238 M close a significant achievement given the challenges of the fundraising environment. “This level of commitment from 19 investors is a testament to the trust in our vision and execution. Evolution III is designed to accelerate Africa’s transition to clean energy in a way that is both commercially viable and socially impactful.”

His partner, Christopher Clarke, believes the fund’s success speaks to a larger shift in global priorities. “The momentum behind Evolution III highlights a shared understanding that Africa’s energy future cannot wait. We’re focused on financing and scaling renewable energy projects that will drive economic growth, expand energy access, and reduce carbon emissions in line with global climate goals.”

Now, with its final close secured, Evolution III is poised to play a major role in shaping Africa’s renewable energy landscape. The work ahead is clear—mobilizing capital, scaling projects, and delivering long-term impact—but Inspired Evolution has never been more ready for the challenge.

The worldwide acceptance of Forex trading has reached Nigeria. However, many people still doubt whether foreign exchange (forex) trading is lawful within Nigerian boundaries. The article explains forex trading regulations in Nigeria and provides step-by-step guidance for beginners who want to start trading legally.

Forex Trading in Nigeria: Legal Framework

Participation in foreign exchange trading exists legally in Nigeria and is subject to official regulations. The Central Bank of Nigeria (CBN) operates under Nigerian government authority to control financial activities by implementing protected rules in forex trading. All forex brokers seeking operation in Nigeria must register with the CBN which both enforces local laws and applies anti-money laundering regulations.

Under its regulatory scope, the Securities and Exchange Commission (SEC) oversees forex trading operations by managing securities and additional financial products. The Nigerian authorities control forex trading through regulatory measures to safeguard both public citizens and national financial standing.

The foreign exchange market in Nigeria operates actively. The CBN periodically enters the market to maintain stable naira exchange rates and regulate the market supply and demand for foreign currencies. Nigerian traders must confirm that their broker services come from brokers who operate worldwide, such as Octa, and maintain full legal recognition and compliance with Nigerian financial rules.

Choosing a Legal and Reliable Forex Broker in Nigeria

Selecting an appropriate forex broker determines both security and profitability in trading operations. The selection of a legal and trustworthy broker operating in Nigeria requires attention to the following criteria.

• Regulation and Licensing — Check that your broker operates under either the Securities and Exchange Commission (SEC) regulation framework or international regulatory frameworks that are highly reputable.
• Security and Transparency — The broker should offer encrypted transactions, segregated accounts, and clear trading conditions to protect traders’ funds.
• Local Adaptation — A reliable broker understands the needs of Nigerian traders, offering local payment options and customer support. For example, Octa balances global standards with local accessibility.
• Fast Deposits and Withdrawals — Select a low-cost broker that enables fast transactions for quick fund withdrawals.
• Customer Support — The broker must uphold continuous communication support through phone, chat, or email.

Risks and Challenges in Forex Trading in Nigeria

The Nigerian foreign exchange trading market presents substantial business opportunities for traders needing to handle different market challenges and risks. Knowledge of these factors becomes essential before starting in the market. The following list includes the main risks that Nigerian traders need to face:

1. Market Volatility

The foreign exchange market maintains high volatility because prices show rapid fluctuations. Financial losses can be avoided through prudent management when trading in this market that provides significant financial gains. Stop-loss orders operate as risk control instruments that every trader must implement for forex market volatility management.

2. Unregulated Brokers

The absence of broker regulation creates significant investment dangers for traders because of fraudulent brokers. Working with unregulated brokers who make false promises and fail to provide proper customer service may result in fund theft from your account. For investment safety, choose a broker that operates under legal regulations and holds a recognized status, such as Octa. If you’re looking for a trusted platform that adheres to global and local regulations, you can login Octa broker and trade with confidence.

3. Currency Fluctuations

The Nigerian naira experiences regular changes because of both economic conditions and political events. The value fluctuations of the Nigerian naira affect the profitability of foreign exchange trading particularly when trading currency pairs that include the naira. Traders need to monitor both domestic and global economic occurrences which influence currency exchange values.

4. Payment and Withdrawal Issues

Some trading brokers provide restricted payment methods for Nigerian traders. Nigerian traders experience difficulties when dealing with withdrawal delays and excessive fees and insufficient withdrawal methods. Selecting a broker with efficient payment solutions for Nigerian users becomes vital because Octa stands out for its reliable and secure transaction methods.

5. Regulatory Changes

The current state of Nigerian forex regulations might change, impacting how traders operate their businesses. Changes made by governments through policy modifications, currency management, and trading regulations will affect forex trading operations. Business traders must maintain awareness of regulatory changes to prevent potential legal issues.

6. Scams and Fraudulent Activities

The occurrence of Forex scams reaches epidemic levels in markets that lack proper regulatory supervision. The trading industry faces rampant scams which include Ponzi schemes together with fake signals and fake promises of quick financial success. Research your broker thoroughly before making a decision because suspicious deals should be avoided.

How to Start Forex Trading Legally in Nigeria

Nigerian residents can easily initiate forex trading provided they implement proper procedures. The essential starting point for forex trading requires Nigerian traders to register with a lawfully regulated broker. Select brokers that hold licenses from both CBN and SEC to ensure Nigerian traders have the required legal protection.

Establishing a trading account becomes your next step after choosing your broker. Octa and most other brokers require standard identification documentation together with proof of your address to start the verification process. Account protection from fraud together with anti-money laundering law compliance in Nigeria depends on this essential verification step.

After successful verification of your trading account, you need to fund your trading account. It is crucial to choose a broker that provides Nigerian traders with safe payment options that are easy to use. The payment options provided by Octa include multiple choices which enable smooth transactions for Nigerian traders.

You can access your Octa broker account to begin market exploration after your trading readiness. Trading on the platform becomes accessible to novices because its interface presents an easy-to-use format.

Ensuring Safe and Legal Forex Trading in Nigeria

The Nigerian law allows traders to conduct forex trading through brokers with proper licenses and official approvals. The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) operate a regulatory system that safeguards traders. Nigerian traders must select a dependable broker, such as Octa, for their trading activities because this platform satisfies international requirements while meeting national needs. Nigerian traders can experience profitable and secure forex trading when they follow correct legal procedures while selecting brokers who operate under regulatory oversight. Your success depends on responsible trading and continuous market information to achieve maximum results.

Mediterrania Capital IV (MC IV), a private equity fund focused on North and West Africa, has gained fresh backing from German development finance institution DEG, which has increased its investment by an additional EUR 15 M (USD 16.2 M).

This new capital injection brings DEG’s total stake in the fund to EUR 25 M (USD 27 M), reinforcing its confidence in MC IV’s ability to foster economic growth, support local businesses, and create jobs in some of the continent’s fastest-growing sectors.

Since its launch, MC IV, which is managed by private equity firm Mediterrania Capital Partners, has focused on investing in mid-sized companies with strong growth potential, targeting sectors essential to the region’s economic transformation. These include healthcare, logistics, fast-moving consumer goods, education, and financial services—industries that are not only vital for development but also offer significant investment opportunities.

The fund’s approach is to acquire minority stakes in well-established businesses, providing them with both capital and strategic expertise to scale operations and expand into new markets. With plans to invest in 8 to 10 companies, each receiving between EUR 20M (USD 21.6 M) and EUR 50M (USD 54 M), MC IV aims to drive long-term, sustainable growth. Approximately 75% of the fund’s capital is allocated to North Africa, while 25% is directed toward Sub-Saharan Africa, ensuring a broad yet focused regional impact.

DEG’s relationship with MC IV dates back to May 2023, when it participated in a EUR 75 M (USD 81 M) fundraising round that played a key role in financing the acquisition of Laprophan, a leading Moroccan pharmaceutical company. That round also attracted other major development finance institutions (DFIs), including FMO, the Dutch entrepreneurial development bank, and Proparco, the French Development Agency’s private sector arm.

Since then, MC IV has moved quickly to build its portfolio and has made strategic investments that reflect its commitment to driving growth in the region. Beyond its stake in Laprophan, the fund invested in Cash Plus, a leading Moroccan fintech company, in October 2023. These investments highlight MC IV’s ability to identify and support businesses that not only show strong financial prospects but also contribute meaningfully to the economic and social fabric of their markets.

Beyond capital investment, DEG plays an active role in strengthening MC IV’s portfolio companies through DEG Impulse, its dedicated advisory initiative. By providing business support services, DEG helps these companies improve operational efficiency, reduce CO₂ emissions, integrate renewable energy solutions, and enhance sustainability practices. The goal is not just to generate financial returns but to ensure that businesses operate responsibly and contribute to the region’s long-term stability.

MC IV is also a 2X Challenge fund, meaning it actively promotes gender equality by supporting businesses that empower women in leadership and the workforce. As part of this initiative, the fund implements targeted measures to ensure that gender diversity is not just an afterthought but a core part of its investment philosophy.

For Mediterrania Capital Partners, DEG’s increased investment represents a strong vote of confidence in its strategy and execution capabilities. With additional capital at its disposal, MC IV is well-positioned to expand its portfolio and deepen its impact on the African private equity landscape.

As the fund continues to deploy capital and scale its investments, its progress will be closely watched. With rising interest in African markets and a growing recognition of the region’s potential, MC IV’s success will serve as a measure of how private equity can help shape the next phase of Africa’s economic growth.

Smallholder farmers in Kenya are set to benefit from a EUR 1 M (USD 1.08 M) technical assistance grant aimed at helping them adopt sustainable farming practices and withstand the impacts of climate change.

The funding, provided by Proparco, will support the Climate Resilient Agri-Food Systems (CRAFS) project, an initiative by the Equity Group Foundation (EGF) designed to equip farmers with the knowledge, tools, and financial access needed to transition to Climate-Smart Agriculture (CSA).

The agreement, signed on March 18, 2025, in Nairobi, brings together key players in Kenya’s agricultural and financial sectors. In attendance were French Ambassador to Kenya H.E. Arnaud Suquet, Proparco’s Regional Director for East Africa Jean Guyonnet-Dupérat, and Equity Group CEO Dr. James Mwangi. This partnership builds on a long-standing relationship between Proparco and Equity Group, reflecting a shared commitment to sustainable economic growth.

Kenya’s agricultural sector is the backbone of its economy, contributing 30% of GDP and 45% of export earnings while providing livelihoods for 75% of rural communities. However, climate change has made farming increasingly unpredictable, with extreme weather patterns, erratic rainfall, and soil degradation threatening productivity. Many smallholder farmers struggle to adapt, often lacking the resources, knowledge, and financial support needed to transition to sustainable methods.

The CRAFS project is designed to address these challenges head-on. Through this initiative, 15,000 farmers every year will receive hands-on training in sustainable farming techniques, access to climate-friendly financing, and support in adopting innovative solutions like water harvesting, waste-to-energy systems, and energy-efficient agricultural practices. A dedicated team will work directly with farmers, suppliers, and value chain partners to ensure these changes are implemented effectively.

For France, this partnership represents a broader commitment to supporting Kenya’s economic transformation. Ambassador Arnaud Suquet emphasized the significance of the initiative, stating: “Agriculture is central to employment, food security, and sustainability in Kenya. This collaboration between France, through Proparco, and EGF will help empower local farmers, demonstrating how impactful partnerships can drive real change in agriculture, fintech, health, and renewable energy.”

Jean Guyonnet-Dupérat, representing Proparco, highlighted the importance of working with established partners like Equity Group. “We are proud to strengthen our collaboration with Equity, a key player in Africa’s financial ecosystem. Through EGF, they are creating real impact by supporting farmers and innovators in the agricultural sector. Proparco is committed to backing initiatives that drive sustainable growth.”

For Dr James Mwangi, the initiative is a crucial step toward securing a resilient agricultural future for Kenya. “This is about empowering farmers to succeed in an unpredictable climate. By embracing Climate-Smart Agriculture, we are giving them the knowledge, financial support, and tools to increase productivity while reducing their environmental footprint. The challenges are significant, but with the right support, smallholder farmers can thrive and contribute to a more sustainable future.”

As Kenya continues to face the realities of climate change, initiatives like CRAFS are not just about survival—they are about long-term prosperity. With backing from Proparco and Equity Group, thousands of farmers will gain the skills and resources needed to adapt, ensuring food security and economic stability for the future.