Surayyah Ahmad Sabou Capital, a new SME-focused fund, will invest up to $1.5 million in 25 African businesses across West and Central Africa, targeting non-VC SMEs with growth potential. — Surayyah Ahmad

A new investment fund called Sabou Capital has been launched by Surayyah Ahmad, a two-time founder and co-founder of Aduna Capital. The fund aims to support 25 small and medium-sized enterprises (SMEs) in West and Central Africa, with investment amounts ranging between $350,000 and $1.5 million per business.

Sabou Capital will focus on late pre-seed to Series A companies operating in sectors such as:

Agriculture and agro-processing
Renewable energy and climate
Logistics and mobility
Supply chain

Unlike traditional venture capital, Sabou Capital describes itself as a micro-private equity fund. It is not targeting high-growth tech startups, but rather SMEs that use technology to improve their operations. The fund expects more modest returns of 2x to 3x, compared to the 10x returns typically expected in venture capital.

The name “Sabou” is based on the Hausa word “Sabo,” meaning rebirth or renaissance, and reflects the fund’s mission to help overlooked African businesses grow.

A major part of the fund’s strategy is gender-lens investing, with a focus on women-led businesses. According to Ahmad, women face more challenges in raising funding, and investing in them can lead to better financial returns.

In addition to money, Sabou Capital will provide technical assistance to its portfolio companies. This includes help with corporate governance, financial systems, and operations to ensure businesses are ready for investment.

The fund will focus on secondary cities in Nigeria, Senegal, and Côte d’Ivoire, avoiding saturated hubs like Lagos or Nairobi. These countries were chosen for their economic growth and more stable, Euro-pegged currencies, which help manage risk.

To strengthen its position in Francophone Africa, Sabou Capital has appointed Christian Amouo as General Partner. Amouo previously ran a fund in Cameroon and brings experience from French-speaking markets.

Sabou Capital has already identified 20 companies in its pipeline and plans to start with investments in two to three companies. Formal fundraising will begin in July 2025 with a roadshow.

The goal, according to Ahmad, is to build strong businesses that can grow over time and eventually attract interest from larger private equity firms or strategic investors.