Africa first: Mobilizing local capital for global impact

Across the continent, Africa’s development financing gap continues to widen. With multilateral development institutions rebalancing priorities and scaling back commitments, the responsibility of bridging this gap is increasingly falling on local capital. The numbers are stark. Africa faces an annual MSME financing gap of US$ 331 billion (IFC), an infrastructure shortfall of US$ 140 billion (AfDB), and a staggering US$ 1.3 trillion gap to meet the SDGs (UNECA). Unless addressed, these deficits will further constrain the continent’s growth potential and weaken resilience against global shocks. At SuperReturn Africa, Eva Abel, Partner & Chief Investment Officer, Oryx Impact, is set to share her expert insights this December in Cape Town.

Local capital taking the lead

The good news is that Africa is not standing still. Sovereign wealth funds are stepping up, channelling capital into infrastructure that powers national economies. But while large projects matter, the real engine of Africa’s economic transformation lies with its micro, small and medium-sized enterprises (MSMEs). MSMEs are the backbone of GDP and employment, yet traditional banking systems serve only a fraction of their financing needs.

Here, private capital: private equity, venture capital, and private credit funds, play a catalytic role. Policymakers have taken notice. From Kenya to Nigeria, Botswana to Namibia, legislators are unlocking the ability of pension funds to allocate to alternative assets. Some countries have gone further: Ghana now requires pension funds to invest at least 5% of assets in domestic PE and VC funds, while Namibia mandates 1.75% allocation to unlisted investments.

The rise of African fund-of-funds

National fund-of-funds are another powerful lever to strengthen local financial ecosystems. Ghana’s Venture Capital Trust Fund (2004) paved the way, with its successor, the Ci-Gaba Fund, closing its first round in 2025. South Africa’s SA SME Fund, launched in 2016, has already raised a successor fund in 2023. Egypt’s MSMEDA Fund of Funds (2022) and Tunisia’s Anava (2021) add to a growing wave, while Nigeria, Zambia, and others prepare to follow suit.

These initiatives represent an important shift: local investors and governments are no longer waiting for global development institutions to fill the gap. They are taking ownership of Africa’s financial future.

Building capacity through partnerships

Yet for pension funds and newly established fund-of-funds, investing in private markets can be complex. It requires not only rigorous investment processes but also a deep understanding of impact frameworks, portfolio construction, and ecosystem dynamics. Getting it right is critical to ensuring capital delivers both strong returns and measurable development outcomes.

This is where specialist partners come in. Private impact fund-of-funds, such as Oryx Impact, are uniquely positioned to collaborate with African institutions. With a dedicated focus on Africa, Oryx Impact brings expertise in structuring investments, evaluating fund managers, and embedding robust impact measurement.

Investing through a specialised fund of funds like Oryx Impact is particularly relevant for investors who:

• Haven’t yet developed significant private fund portfolios of their own, or aren’t satisfied with financial or impact performance of their Africa private fund portfolios
• Highly value diversification across asset classes, sectors and geographies, as a risk mitigation approach
• Seek measurable and significant impact at scale, especially with regard to economic development and job creation; climate adaptation, resilience and mitigation; and gender equality
• Want to participate in developing a stronger, more resilient and more collaborative private fund ecosystem across the entire African continent, by supporting an intermediary that provides Technical Assistance to ensure Fund Manager’s improved ESG and impact measurement and management practices, collaboration and knowledge sharing, and better data transparency and management
• Want to contribute to mobilisation of capital for impact investing in Africa
• Want to reach emerging fund managers, whilst de-risking financial returns by concurrently supporting seasoned investment houses
• Require access to validated, comparable financial and impact data at portfolio level
• Seek diversified exposure to multiple funds, with a single administrative interface providing timely, reliable portfolio reporting and management.

By partnering with local pension funds and government-backed vehicles, Oryx Impact helps accelerate the deployment of capital into Africa’s most promising enterprises, while ensuring investments align with development priorities.

Looking ahead

Africa’s financing gaps are vast, but so is its potential. By mobilizing local capital through pension funds, sovereign wealth funds, and national fund-of-funds, and by partnering with dedicated impact investors, the continent can unlock growth that is both inclusive and sustainable.

At Oryx Impact, we believe this is Africa’s moment: to invest locally, scale globally, and deliver impact that resonates far beyond its borders.