How to identify funding sources for your business in Africa

  • African companies have different ways to raise funds for their startups and make them a huge success
  • In 2022, companies in Africa, including Nigeria, Kenya, South Africa and Egypt, raised over $1 billion
  • Raising your startup funding can take many forms, such as personal funding, seed funding, and other ways for your business to grow.

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

Funding is one of the essential elements of business success, and fundraising is what many people in Africa find difficult.

Funding sources for your business Credit: PeopleImages
Source: Getty Images

According to recent reports, startups in Africa raised over $1 billion in 2022 alone, and most startups are in Nigeria, Kenya, and South Africa.

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

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

Personal funding.

Investing in your ideas is a way to send a powerful message to potential investors that you believe in your business ideas enough to provide them with their first seed money.

It’s easier to convince others that your business is viable when you’ve taken the first steps to fund it yourself.

Other investors would likely believe in your business if you showed them how far you’ve come and grown with your own business.


It comes down to financing your business from within. In some cases, this is another method of showing that the business is viable. In Bootstrapping, the industry can sustain itself, generating cash for future growth as it expands.

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Friends and family

They are the first to believe or disbelieve our business ideas; when they do, they generally do not require proof of our work.

They can be a good source of funding for our business, but come at a cost. If the business fails, relationships can suffer. Make sure your investors understand the risks of funding your idea before taking their money.


There are funding opportunities in Africa, mostly available in the form of grants. This means you don’t need to repay once you qualify for assistance.

The main sources of grants in Africa include:

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


The practice of funding a project or business 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
  • Afrikwitness
  • Thundafund

The crowdfunding industry in Africa is estimated to grow 300% annually, reaching $96 billion by 2025.

Angel investors and venture capitalists

Venture capitalists provide seed funding for your business. They usually make large investments and take a large share of the business.

Angel investors are wealthy individuals willing to invest in your business or combine their resources to grow your business.

Here is a list of some venture capital platforms in Africa;

  • Seedstars Africa Ventures
  • Ajim Capital
  • Advantageous capital
  • Business platform
  • Ingressive capital

A student earns 290.5 billion naira a year by creating bags which she started as a side business reported that two years ago, Wilglory Tanjong, an MBA student from Senegal, started her bag business for fun.

Now she sells her bags everywhere including Nordstrom and Revolve and also asked 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 its launch in 2020, with around N250.5 million in 2021 alone. Her business has recently achieved a turnover of around N41.5 million every month.



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