A new investment fund is gearing up to tackle Africa’s SME funding gap head-on. Sabou Capital, spearheaded by Northern Nigerian entrepreneur Surayyah Ahmad, plans to invest up to $1.5 million across 25 businesses in Anglophone and Francophone Africa. The fund is focusing on high-impact sectors including agriculture, climate, logistics, mobility, and renewable energy.
Sabou Capital derives its name from the Hausa word “Sabo”, meaning rebirth, blended with a French influence. Its mission is to back overlooked yet promising small businesses often bypassed by traditional venture capital. “We’re looking at SMEs with growth potential—not necessarily VC-scale—but that have unmet demand and can leverage funding and technical support to grow,” Ahmad explained.
Rather than chasing unicorns, Sabou adopts a “micro-private equity” model with a realistic return expectation of 2-3x. Its strategy aims to nurture SMEs from late pre-seed to Series A stages, favouring operational resilience over flashy valuations. Ahmad, who co-founded Aduna Capital, launched Sabou after a strategic shift in her former firm’s focus. Now, her vision spans Nigeria, Senegal, and Côte d’Ivoire—especially underserved secondary cities.
Backing Impact, Not Just Valuations
Sabou’s investment philosophy sets it apart from VC firms known for high-risk tech plays. Instead, it supports SMEs leveraging technology for operational efficiency, even if they aren’t strictly tech companies. This approach aligns Sabou with firms like Aruwa Capital, Afrinvest, and Catalyst Fund, but with a sharper grassroots lens.
Women-led businesses are a core focus too. Sabou applies a gender-lens strategy, investing in female entrepreneurs who often lack investor networks. “For every dollar invested in a woman, the return is 2X,” Ahmad noted, while also acknowledging the funding hurdles many women face.
Her own experience as a Northern founder highlights these challenges. “I ended up raising from a family office in the North and selling the company earlier than I wanted,” she said. To change that narrative, Sabou will pair funding with strong technical support—focusing on governance, financial discipline, and operational structure.
Supporting Ahmad’s regional strategy is Christian Amouo, a Francophone private equity expert who previously managed a fund in Cameroon. Three of the four companies he invested in remain operational, reinforcing Sabou’s confidence in the region.
With Nigeria’s economic volatility in mind, the fund is diversifying into Senegal and Côte d’Ivoire, countries with more stable, Euro-pegged currencies and promising growth outlooks. “With Nigeria facing high inflation and devaluation, we’re leveraging our team’s regional expertise to manage risk,” Ahmad added.
Sabou Capital’s roadshow begins in July, marking the start of its fundraising drive. With 20 SMEs already shortlisted, the team hopes to kick things off with two or three initial investments—possibly reshaping how Africa funds its future
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