How to Identify Funding Sources For Your Business in Africa

How to Identify Funding Sources For Your Business in Africa

  • African businesses have various ways of raising funds for their startups and making a massive success of it
  • In 2022, companies in Africa, especially in Nigeria, Kenya, South Africa and Egypt, have raised over $1 billion
  • Increasing funding for your startups can come in several ways like personal financing, bootstrapping, and other means your business can grow

Africans are full of business ideas, and funding is one of the impediments to executing their business ideas.

Funding is one of the critical elements of business success, and raising funds is what many people in Africa find difficult.

Funding, Africa, businesses
Sources of funding for your business Credit: PeopleImages
Source: Getty Images

According to recent reports, startups in Africa have raised more than $1 billion in 2022 alone, and most of the startups are in Nigeria, Kenya and South Africa.

In the first half of this year, African businesses raised about $1.3 billion, and experts say the second half of the year will be even more critical.

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There are myriad ways to source funding for your business, especially if it's a startup.

Personal funding.

Investing in your ideas is one way to send a powerful message to prospective investors that you believe in your business ideas enough to provide it with its first seed capital.

It is easier to convince others that your business is viable when you have taken the initial steps to fund it yourself.

Other investors would likely believe in your business when you show them how far you've come and grown with your own business.


It is akin to financing your business from the inside. In some cases, it is another method to show that the company is viable. In Bootstrapping, the industry can support itself, generating cash for further growth as it grows.

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Friends and Family

They are the first to believe or disbelieve our business ideas; when they do, they don't usually require proof of our work.

They can be a good source of funding for our business but come at a cost. If the company fails, relationships may suffer. Ensure that your investors understand the risks of funding your idea before you take their money.


There are funding opportunities in Africa, primarily available as grants. It means you do not need to repay once you qualify for the assistance.

Top grant sources in Africa include:

  • Tony Elumelu Foundation Entrepreneurship Program
  • Africa Business Heroes Prize
  • Anzisha prize
  • MEST Africa Challenge
  • African Entrepreneurship Award.


The practice of funding a project or venture by raising money from a large number of people who each contribute a small amount is called crowdfunding.

There are several crowdfunding opportunities for African entrepreneurs.

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  • African crowd
  • Jamaafunding
  • Yadav
  • Afrikwity
  • Thundafund

The crowdfunding industry in Africa is estimated to grow at a rate of 300% per year, reaching $96 billion by 2025.

Angel Investors and Venture capitalists

Venture Capital Companies provide initial stage funding for your business. They usually make large investments and take a significant share of the company.

Angel investors are high-net-worth individuals willing to invest in your business or combine resources to grow your business.

Here's a list of some venture capitalists' platforms in Africa;

  • Seedstars Africa Ventures
  • Ajim Capital
  • Vantage Capital
  • Ventures Platform
  • Ingressive Capital

Student makes N290.5 billion yearly creating bags she started as side business reported that two years, ago MBA student, Wilglory Tanjong from Senegal, launched her bag business for fun.

Now, she sells her bags everywhere, including Nordstrom and Revolve and also got pop singer, Beyonce to endorse her bags on Instagram.

Amina Iris, as her bag business is known, has made over N290.5 billion in lifetime revenue since launching in 2020 with about N250.5 million in 2021 alone. Her company has recently earned about N41.5 million revenue every month.


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