Why We Need More Focus on Business Growth Capital in Sub-Saharan Africa

There needs to be more focus on business growth capital in Sub-Saharan Africa. Africa. Sub-Saharan Africa has enormous potential for economic growth and development. However, this potential remains largely untapped due to a lack of adequate funding for growth stage businesses in the region. Without sufficient funding, many promising businesses in Sub-Saharan Africa are unable to expand and contribute to the region’s economic growth.business growth capital in sub-saharan africa

One of the main challenges facing growth stage businesses in Sub-Saharan Africa is the lack of access to capital. This is particularly true for businesses that are looking to scale up and expand into new markets. The World Bank recenly made a number of predictions around ecenomic growht in Africa. A key to this prediction was the availability of business growth capital . Traditional sources of funding, such as banks and venture capital firms, are often unwilling to invest in these businesses due to perceived risks and uncertainties.

To address this challenge, it is critical that more funding is made available to growth stage businesses in Sub-Saharan Africa. This funding should be provided by a range of investors, including private equity firms, impact investors, and development finance institutions.

Private equity firms have a key role to play in providing business growth capital in Sub-Saharan Africa. These firms have the expertise and resources to identify promising businesses and provide the capital needed to help them scale up and expand. In addition, impact investors are increasingly focusing on investing in businesses that have a positive social or environmental impact, which can be particularly important in a region like Sub-Saharan Africa.

Development finance institutions also have an important role to play in providing funding to growth stage businesses in Sub-Saharan Africa. These institutions have a mandate to support economic development in the region, and they can provide patient capital that is not subject to the same short-term pressures as other investors.

In addition to funding, growth stage businesses in Sub-Saharan Africa also need support in the form of mentorship, business advice, and access to networks. This can help these businesses navigate the challenges of scaling up and expanding into new markets.

Overall, it is clear that more funding for growth stage businesses is essential for the economic development of Sub-Saharan Africa. By providing the capital and support needed for these businesses to grow and succeed, we can help unlock the region’s potential and create a brighter future for all.

Business Growth Capital in Sub-Saharan Africa – The Steps We Need To Take

One critical step is to create an enabling environment for business growth. This includes addressing regulatory barriers that hinder business operations and access to finance. Governments can play a critical role in creating a favorable regulatory environment that encourages investment and entrepreneurship. For example, simplifying the process of registering a business, reducing the tax burden on small businesses, and establishing a stable legal framework can create a conducive environment for business growth.

Another key step is to support the development of infrastructure, including access to electricity, water, and transport. This can improve the competitiveness of businesses, reduce the cost of production, and increase access to markets. Governments, development partners, and private sector investors can collaborate to finance and implement infrastructure projects.

Investors also need to prioritize building the capacity of the businesses they invest in. This includes providing technical assistance, mentoring, and training to entrepreneurs and management teams. By doing so, they can help businesses to improve their operations, enhance their products and services, and expand their markets.

In addition, investors should consider the social and environmental impact of their investments. They should prioritize investments that create positive social and environmental outcomes, such as job creation, poverty reduction, and environmental sustainability. This can help to build trust with local communities and ensure that investments contribute to the broader development goals of the region.

Finally, investors should foster partnerships and collaboration among stakeholders. This includes engaging with local communities, governments, and other investors to build networks, share knowledge, and leverage resources. By doing so, they can create a more supportive ecosystem for business growth and help to address the complex challenges that businesses face.

Investing in business growth capital in Sub-Saharan Africa has the potential to drive economic growth and create opportunities for entrepreneurs and investors. However, realizing this potential requires a collaborative effort from governments, investors, and other stakeholders to create an enabling environment for business growth, build the capacity of businesses, prioritize social and environmental impact, and foster partnerships and collaboration. By taking these steps, we can unlock the full potential of business growth in Sub-Saharan Africa and contribute to the broader development goals of the region.

So what can growth stage businesses do to attract more venture capital funding? Below I suggest a few steps you can take to ensure you are visible to the right investors.

Venture capitalists are always on the lookout for high-potential businesses with innovative ideas, a scalable business model, and a strong team to execute the plan.

Build a Strong Management Team: A business with a strong management team has a higher chance of attracting venture capital funding. Investors want to see a team with the right mix of skills and experience to execute the business plan successfully. As a business owner, you should focus on building a team with a track record of success, experience in your industry, and a passion for your business.

Demonstrate a Scalable Business Model: A scalable business model is essential for attracting venture capital funding. Investors want to see a business with the potential to grow rapidly and generate substantial returns on investment. You should be able to demonstrate how your business can scale quickly and sustainably while maintaining profitability.

Showcase a Clear Path to Revenue: Venture capitalists invest in businesses that have a clear path to revenue. You should be able to demonstrate how your business can generate revenue and grow quickly. Investors want to see a clear plan for monetizing your product or service and reaching profitability.
Leverage Technology: Technology can be a powerful tool for attracting venture capital funding. Investors are often attracted to businesses that leverage technology to disrupt traditional industries or create new markets. You should focus on incorporating technology into your business model to make it more efficient, scalable, and profitable.

Establish a Strong Market Presence: A strong market presence can also help attract venture capital funding. Investors want to see a business that has a strong brand and a loyal customer base. You should focus on building a strong brand and establishing a presence in your target market.

Develop a Comprehensive Business Plan: A comprehensive business plan is essential for attracting venture capital funding. Your plan should include a detailed description of your business, market analysis, financial projections, and growth strategy. It should also outline how you plan to use the investment funds to grow your business.

Be Proactive in Seeking Funding: Finally, you should be proactive in seeking venture capital funding. You can attend networking events, pitch competitions, and other events to meet potential investors. You can also seek out venture capital firms that specialize in your industry or market.

In conclusion, attracting business growth capital in Sub-Saharan Africa can be challenging for growth stage businesses in Sub-Saharan Africa. However, by focusing on building a strong team, demonstrating a scalable business model, showcasing a clear path to revenue, leveraging technology, establishing a strong market presence, developing a comprehensive business plan, and being proactive in seeking funding, you can increase your chances of attracting venture capital funding and take your business to the next level.

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Matthew Musgrove

Matthew Musgrove

Matthew is an entrepreneur and business Advisor with a passion for change management and social empowerment. With a background in business accounting and advisory, as well clinical research project management, he strives to find strategic and sustainable solutions to business problems.



Mark Van Hoff comes from background of technical & production planning, budgeting & scheduling of major live events. As the first production co-ordinator at M-NET for Outside Broadcasts, Mark has managed major local and international productions including Miss South Africa, Miss World, multiple music events and major sports events, including the PnP Cycling Tour.​Mark co-founded Van-Man Productions in 1994, Page to Picture in 2000 and Move Media Networks in 2007. All three companies have achieved domestic success and have been well-regarded in the South African production industry.



Oluwaseun Adewuyi who is the Group Chief Finance Officer (CFO) at Caban, is a Certified Chartered Accountant, with Fellowship status at both the ACCA as well as the Institute of Public Finance and Accountancy, a UK Based industry body with a specific focus on the management of charities, not-for-profit organisations and NGOs.. Oluwaseun comes with strong business acumen and 20+ years of progressive experience in finance and operations management within well-reputed and high growth organisations Including Next Plc and Royal Mail. He has been heavily involved in impact investment across Sub-Saharan Africa and has been instrumental in the creation of a series of community schools in West Africa. Throughout his career, he oversaw a broad range of operations, including Business Strategy and Business Reorganisation, summarising the organisation’s financial status, and coordinating the preparation of tactical plans, financial forecasts, and budgets. Adept at developing and implementing effective internal control framework to maintain sound financial accountability.

tim scholtz


Tim Scholtz, who's is the Chief Operating Officer (COO) at Caban Investments, is experienced in implementing corporate governance guidelines, formulating risk management structures, process and cost optimization. Tim has a strong corporate background, having worked as COO at the South African Tourism board, was COO at the Nelson Mandela foundation and as a internal audit manager at Arthur Anderson earlier in his career.

Ben Botes


Ben Botes is Entrepreneur, VC, co-Founder, Author and Academic with a strong social conscience. Ben Involved with early stage and growth firms for the past 20 years and has been Co-founder of 9 separate businesses across Africa. Ben has directly and indirectly been involved in impact investment and the support of charities and non profits for the last 30 years. Ben is a regular speaker at the African Investment Conference in London and has been featured in Wall Street for Europe, The Guardian Small Business, BBC, the Mail and Guardian in the UK and BizCommunity, Channel 3 TV, Investors Weekly, The Cape Times, Radio 702 with John Robbie and Good Hope FM in South Africa

Dave Romero


Dave Romero is a venture capitalist and entrepreneur with a passion for making an impact. A qualified Professional Accountant, Dave has been a director in multiple financial institutions and was once the youngest Chairman on the JSE, in addition to being listed as one of Business Times’ Top 100 companies and the 40th fastest-growing company in South Africa. Dave is a core founder of the Caban Group, which aims to provide a comprehensive service offering to small businesses in return for equity. With a passion for nurturing entrepreneurs, Dave can often be found outside of the boardroom – offering advice, creating innovative funding solutions and building communities through sustainable practices.



Dr Ruben Richards is a truly inspirational South African leader. Through his peace-building seminars for criminal gangs, Dr Ruben has facilitated the longest ceasefire in the history of gang warfare on the Cape Flats. In addition to being Chairman & Founder of the non-profit Ruben Richards Foundation, Dr Ruben is an ordained cleric, company director, non-executive Chairman of Visual International Limited and was once the Deputy Director-General of the now-disbanded Scorpions.