#9 - From Why to How
From Why to How
Over the last few months, in conversations with US-based investors, one pattern keeps coming up:
People are starting to see Africa differently.
At a macro level, the case is becoming harder to ignore:
The fastest-growing population in the world
A rapidly expanding working-age demographic
Urbanization, digitization, and consumption curves that look a lot like Asia’s did 20–30 years ago
And yet, less than 1% of global institutional capital is allocated to the continent, making valuations attractive
Many investors I speak with understand this. They want exposure to Africa’s long-term growth trajectory. Not as charity. Not as a side bet. But as a legitimate part of a diversified, forward-looking portfolio.
And then the second reality sets in:
They don’t know how.
For most people, investing in Africa means navigating private markets — which often have eligibility requirements, including accreditation standards, unless done through structures like Donor Advised Funds. Even for those who can invest, the learning curve is steep.
Most US investors don’t make sector or geographic bets when they invest in their domestic portfolios. They don’t wake up deciding whether logistics will outperform healthcare, or whether Texas will outperform California. They buy index funds because simplicity, diversification, and access matter.
So, expecting someone to suddenly develop conviction on, say, fintech in Nigeria versus agribusiness in Kenya — from thousands of miles away — isn’t realistic. And frankly, it shouldn’t be.
The feedback I hear over and over is this:
“I’m interested in investing in Africa — I just need an easy, turnkey way to get broad exposure to Africa’s economic development.”
That perspective makes sense.
Many people have lost money in direct deals, and it makes sense why. Africa is a challenging operating environment — even for career fund managers. Execution risk is real. Governance matters. Local context matters. And without it, capital gets punished.
But the story doesn’t end there.
What often gets missed is that there are exceptional fund managers across the continent — people who understand local markets, structure risk appropriately, and build diversified portfolios across countries and sectors. I’ve spent time coming across many of them through my research and travels, and the quality continues to improve year after year.
For those looking for exposure through for-profit firms, there are a few practical paths:
Public Markets (For Research & Learning Purposes Only)
VanEck Africa Index ETF (AFK)
A publicly traded ETF that provides diversified exposure through listed companies.
Private Markets (For Research & Learning Purposes Only)
Below is a non-exhaustive list of Africa-focused private equity and venture capital funds that I’ve come across. This list is provided solely for informational and educational purposes and does not constitute a recommendation, endorsement, or solicitation. Information about private funds is provided solely for general awareness and should not be interpreted as an invitation to invest. Access to such funds is determined entirely by the fund managers and applicable regulations. Many private funds have eligibility requirements, including accreditation standards, and may not be appropriate or accessible for all investors.
Venture Capital Funds
Private Equity Funds
Private Credit Funds
Impact Focus Funds
Africa doesn’t need more hero capital chasing individual deals.
It needs diversified capital stacks aligned with its long-term development.
And increasingly, investors are ready for that — they just need the right on-ramp.
Important Disclosure
This email is provided for informational and educational purposes only and does not constitute investment advice, financial advice, legal advice, tax advice, or a recommendation or endorsement of any investment strategy, security, fund, or investment vehicle. Nothing in this email constitutes an offer, solicitation, or invitation to buy or sell any securities or to participate in any investment program. Any funds or investment vehicles mentioned are referenced solely for informational purposes based on publicly available information and personal observations. Investment decisions involve risk, including the possible loss of principal. Readers should conduct their own independent due diligence and consult with qualified financial, legal, and tax advisors before making any investment decisions.