Tokunboh Ishmael, Co-Founder & Managing Partner, Alitheia Capital
The energy was palpable last week at the African Private Equity and Venture Capital Association (AVCA) conference in Lagos. After two decades of investing across Africa, I left this gathering with something beyond the usual networking buzz – a renewed conviction that capital deployed with clear intention can truly transform our continent.
Africa’s Investment Landscape is Evolving
Let’s talk numbers for a moment. Africa’s venture capital sector has been on an impressive journey, growing at 25% annually over the past decade and hitting $3.6 billion across 487 deals in 2024 alone. On the private equity side, we’ve seen remarkable resilience despite global headwinds, with 2023 recording 450 deals worth $5.9 billion. In 2024, fundraising more than doubled to US$4.0 billion, deal volume grew by 8%, and exit activity surged by 47%. These aren’t just statistics; they represent real businesses creating jobs and delivering essential services across the continent.
The momentum is building, with long-term trajectory indicating a resilient and maturing private capital landscape, driven by increasing investor interest, a growing number of investment opportunities across the continent, youthful demographics, rapid digital adoption, and local innovation.
But here’s what struck me the most in Lagos: Africa doesn’t lack talent, innovation, or opportunity. What we need is investment that comes with courage, commitment, and clear intention.
When Capital Meets Purpose
Through some investments my firm, Alitheia Capital, made, I’ve seen firsthand how intentional capital creates lasting change. Let me share two quick stories:
In rural Oyo State, Nigeria, we invested in Psaltry International, a small cassava processing firm. Four years later, they are supplying national and regional multinationals, running a solar-powered plant that provides electricity to the surrounding community, and exporting value-added products. This transformation didn’t just build a business; it strengthened the entire value chains and created meaningful employment.
Twelve years ago, we backed a mid-sized Nigerian bank heavily exposed to foreign currency risk. With strategic funding and guidance, it pivoted to local currency financing, expanded from one state to sixteen, and grew its loan book 40-fold — bringing financial services to previously underserved regions. We recently exited with a 3x return while achieving multiple social impact.
These examples reinforce our core belief: returns and impact aren’t competing objectives, they are mutually reinforcing. At Alitheia Capital, our approach rests on three foundations:
- Gender Lens Investing
The numbers don’t lie: less than 7% of the over US$800 billion allocated to emerging markets has been invested in women-led companies. Yet these businesses consistently deliver outsized results. We invest in businesses owned or led by women, and/or servicing women’s needs. The diversity dividend is real – better governance, deeper market insights, and more innovative products.
- Climate for Operational Efficiency
Energy gaps remain a major constraint for African business. Many still rely on expensive, polluting diesel generators. By helping portfolio companies transition to solar, we’ve cut energy costs by up to 50 percent — savings that have been reinvested into operations and growth. For Africa, green energy isn’t just an environmental response, it’s a competitive advantage.
- Digital transformation
While fintechs grab headlines, much of the foundational economy — agriculture, light manufacturing, retail — remains largely disconnected from productivity-enhancing digital tools. We invest in platforms that enable small businesses in traditional sectors to manage operations, improve service delivery, and scale. Africa’s digital economy is expected to contribute up to $180 billion to the continent’s GDP by 2025 and $712 billion by 2050. These gains won’t come just from standalone apps, but from integrating digital solutions across the economic base.
The Call for Intentional Capital
As I reflect on AVCA 2025, one truth stands clear: Africa is not waiting to be discovered; it is already building, innovating, and leading. The talent is here. The tools are here. The opportunities are abundant. The continent needs investment that is intentional, strategic, and grounded in impact. Capital that doesn’t just chase returns but build resilient economies, broaden inclusion, and deliver lasting value.
What we need now is investment that:
- Diversifies: Broadening investor bases, funding sources, and ensuring a wider range of enterprises that receive support.
- Digitises: Strengthening the infrastructure across the real economy, not just its digital storefronts.
- Democratises: Ensuring equitable access to health, education, finance, and energy for those too often left behind.
Looking toward the African Union’s 2063 agenda — a future defined by integration, prosperity, and self-determination — we must deploy capital efficiently and with purpose. The kind of purpose that turns investment into catalyst, and opportunity into transformation.
The future of African private capital isn’t just about financial returns – it’s about building the resilient, inclusive economies our continent deserves. And that starts with intentionality.