By Achumboro Ataande
God has endowed Africa with wealth, people, and promise. I had the opportunity to witness everything firsthand last November when I traveled to Nairobi, Kenya, to address the 11th Angel Fair Africa (AFA@11). AFA is an initiative aimed at promoting funding for top-tier startups across the region.
They typically organize a multi-day gathering in various African countries annually, uniting leading startups from throughout the continent, entrepreneurs who have successfully sold their companies, and venture capitalists.
The AFA group typically extends invitations to between two and four times as many investors compared to the number of startup founders. This creates an environment where the count of investors is at least twice that of the entrepreneurs.
I received an invitation to discuss investment, which, when done effectively, connects resources with individuals who have potential or links those with potential to available resources. This marked my initial chance to exchange knowledge in Africa with local startups on strategies for convincing investors to support their ventures.
Nevertheless, this wasn’t what made the event stand out for me; rather, its uniqueness lay in the objective of gathering top African startups with investors to encourage funding—a rarity, particularly across Africa. Indeed, up until now, AFA has directly supported approximately $10 million USD in startup investments and indirectly contributed nearly $100 million.
A major challenge encountered by startups and companies across Africa is the lack of available financing. This perspective is supported by the Economist.
In order for Africa to experience the economic growth seen in East Asian nations, it would have to increase its investment level to twice its current percentage of GDP.
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Loans are hardly a viable choice for many companies, with
average interest rates of 25% in 19 African nations versus 9% in Vietnam and India
One of the Ghana-based startups I have invested in was able to secure a loan with an interest rate of 28%, despite having confirmed customers and sufficient revenue to support the borrowing.
While composing this article, I was approached with an unexpected proposal offering $4.1 million in financing at a 7.5% interest rate for my company. The availability of financial resources and credit in the United States is among the factors contributing to the high number of unicorn businesses emerging from the country. Hence, initiatives such as Angel Fair Africa are crucial in delivering sustainable funding to African entrepreneurs.
Over the past three years, I’ve put money into approximately eight African startups, with an aim to reach 1000. Furthermore, I’ve made additional investments in half of these companies. The majority of these opportunities were introduced to me through Eric Osiakwan, who serves as the Managing Director at Chanzo Capital.
He is the visionary behind Angel Fair Africa. Hence, when he extended an invitation for me to visit Angel Fair Africa and witness operations firsthand, I eagerly accepted. It exceeded all of Eric’s promises and even more. I’ll elaborate on the “more” aspect later.
In addition to affecting investors such as myself to fund start-ups, what sets AFA apart is its capacity to assist investors in grasping the actual conditions within the companies. The following day after the event, Ahadi Corporation, which offers internet connectivity to individuals living at or beneath the poverty level, extended an invitation for us to observe their activities.
They reside in the slums of Kibera, an area many Kenyans avoid visiting. This trip highlighted the significant impact a successful startup can make within a community. We observed locals gaining reliable internet access in a region that few businesses would consider entering.
Furthermore, they employed individuals from the local area, establishing visible job opportunities in communities where businesses typically do not hire. We observed the sense of dignity in their expressions. Most importantly, this business has turned into a successful enterprise, ensuring that both the services and employment possibilities remain available for the neighborhood.
Following all of this, it was logical to take AFA to New York City to engage with Africans living abroad. Numerous individuals in NYC have an interest in venture capital investment, yet they require guidance on how to participate, particularly within Africa. Establishing this connection between funding sources can facilitate the essential flow of financial resources for African entrepreneurs.
The AFA in NYC
on September 19, 2025
has already attracted significant attention from venture capitalists and angel investors, making attendance at this exclusive event full. We look forward to allowing more individuals into the ecosystem in the future, enabling greater involvement in ”
Finance and Development in Africa
what is the central idea of the gathering.
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