From about $400 million of annual investment, the African venture capital (VC) ecosystem, though still very young, has grown to roughly $4 billion in just over a decade, clear evidence that the capital base is expanding.
Global Head, Venture Capital and Direct Investments, International Finance Corporation (IFC), Mohamed Eissa, made this known at the sixth Venture Capital (VC) Summit hosted by AVCA – the African Private Capital Association.
The summit kicked off the industry association’s 22nd Annual Conference in Nairobi, Kenya.
AVCA’s annual global gathering brings founders, venture capital investors, corporate venture arms, philanthropic foundations and policymakers together to deepen Africa’s entrepreneurial landscape.
At the summit, Eissa, during a panel titled ‘From Hype to Fundamentals: Resetting the African VC Story,’ described Africa’s venture capital ecosystem as “still very young.”
The IFC Global Head, however, said “it has grown from about $400 million of annual investment to roughly $4 billion in just over a decade, clear evidence that the capital base is expanding, even if it’s still not enough.”
Eissa was joined by other panelists, including General Partner, Partech Partners, Tidjane Dème; Partner, Novastar Ventures, Sapna Shah; and Founder and Executive Chair, Janngo Capital, Fatoumata Bâ.
The panelists exchanged views on whether imported VC models ever fully fit the continent’s realities, reflecting candidly on where expectations diverged from outcomes and assessing what has and has not worked in the market.
Outlining the roadmap for onward growth, Dème, a veteran VC investor, quoted Ido Sum, entrepreneur and Partner at TLcom Capital, saying: “African venture capital isn’t broken – it’s just young.”
He added that: “A decade ago, we saw around 30 deals a year; today, that number exceeds 500. We’re still building, and we can’t compare ourselves to a 50-year-old U.S ecosystem just yet. We have time.”
The summit featured interactive sessions on pathways to exits, with collaboration identified as key to improving liquidity.
Industry leaders, including Investment Director, AfricInvest, Patricia Rinke; Executive Chairman, Silverbacks Holdings, Ibrahim Sagna; and Partner, TLcom Capital, Andreata Muforo, outlined the need to look beyond Initial Public Offerings (IPOs) and assessed the role of strategic acquisitions and Mergers and Acquisitions (M&A) as deliberate liquidity strategies.
Building on the sentiments of Actor, Director, Producer, Investor and Philanthropist, Boris Kodjoe, who outlined the importance of African diaspora investors participating in the continent’s growth story, Head, Strategy and Performance, National Social Security Fund (NSSF) in Uganda, Alex Rumanyika, issued a call to action to African institutional investors to play a more active role in scaling African businesses.
“If we don’t get into this space,” Rumanyika stated, “it is going to be an existential threat for NSSF and many pension funds. We need to diversify away from overexposure to government assets and into the sectors where jobs are actually being created.”
The VC conference was followed by a dedicated Private Credit Summit introducing leading investors who are expanding the region’s private capital ecosystem with new financing tools, reshaping how the continent competes for global capital.
Co-Head, Emerging Market Alternative Credit, Ninety One, Nathaniel Micklem, said, “Private credit is one of the most exciting parts of our asset management platform – but it cannot be built using imported public equity or private-equity instincts.
“What works in Africa is deploying into stronger, more resilient businesses and sectors, not earlier-stage ventures or smaller SME exposures.”
Co-Founder and Managing Partner, BluePeak Private Capital, Walid Cherif, concluded by saying: “Private credit is especially suited to African markets because companies continue to perform even when exits are hard to achieve. It is an easier conversation today than it was years ago.”
He expressed that underwriting must remain thoughtful and selective as managers need to resist pressure to move too fast, because credibility with Limited Partners (LPs) comes from having executed the strategy over time and returned capital, not simply from a compelling market story.
Earlier at the opening of the summit, Chief Executive Officer, AVCA, Abi Mustapha-Maduakor, commended the VC industry’s fortitude and ability to execute during tough economic cycles.
Abi acknowledged that despite a challenging fundraising environment, “venture-backed exits reached a record high in 2025,” highlighting a pivotal shift in the ecosystem: “The centre of gravity is moving toward local capital, local expertise, and local conviction.”
A defining moment of the day was the keynote fireside chat between Kodjoe and Abi, with the former underscoring the role of storytelling in shaping how markets are understood and how capital flows.
As Kodjoe stated: “Storytelling is economic architecture – those who control the narrative shape valuation, and perception is what drives investment.”