Bridging the Funding Gap for African SMEs

Nigeria-based impact fund Sabou Capital has secured an investment from the Mastercard Foundation Africa Growth Fund, aiming to address a critical gap in funding for established small and medium enterprises (SMEs) across multiple sectors. The undisclosed investment will support early growth-stage companies in Nigeria, Cameroon, Côte d’Ivoire, and Senegal.

The Mastercard Growth Fund, with $200 million dedicated to supporting African-owned investment vehicles focused on women-led businesses, recognizes Sabou Capital’s unique approach to filling this market need. According to Surayyah Ahmad, partner at Sabou Capital, many revenue-generating SMEs are excluded from growth capital due to investor-readiness requirements that they haven’t yet met.

Expanding Beyond Fintech

While fintech has dominated African startup funding in recent years, capital is gradually diversifying into sectors like logistics, agriculture, healthcare, and climate tech - all critical components of supply chains. This shift aligns with Sabou Capital’s focus on backing companies in secondary cities often overlooked by mainstream investors.

The fund will disburse tickets ranging from $300,000 to $2 million, targeting businesses that have proven their models but still need support to meet institutional investor standards. Beyond capital, Sabou provides hands-on assistance including financial reporting training and operational guidance.

“We see a disconnect between how capital is structured and how these companies actually grow,” explains Christian Amouo, partner at Sabou Capital. “Our role is to bridge that gap so businesses can thrive on terms that reflect their realities.”

Launched in 2025, Sabou Capital has already invested in companies like Tomato Jos, a Nigerian agricultural producer of locally-sourced tomato paste. The fund anticipates creating around 4,200 direct jobs and 50,000 indirect value chain positions with a particular focus on women and youth entrepreneurs.