African small and medium-sized enterprises (SMEs) are often caught between being too large for microfinance and too unconventional for venture capital. Sabou Capital, a newly launched fund led by entrepreneur Surayyah Ahmad, is stepping in to fill that gap—bringing smart capital and tailored support to the region’s most promising businesses.
The fund plans to invest between $350,000 and $1.5 million in 25 SMEs across agriculture, agro-processing, renewable energy, supply chain, logistics, and climate-aligned sectors. Its unique approach combines funding with operational assistance, targeting businesses that are ready to scale but lack access to structured private investment.
Unlike traditional VC funds chasing tech unicorns, Sabou positions itself as a micro-private equity firm, investing in companies that leverage technology to enhance operations, rather than those developing tech products as their core.
“We’re not chasing unicorns,” Ahmad explains. “We’re supporting real businesses with real demand that just need the right structure and funding to grow.”
A Model Built on Experience and Realism
Ahmad’s approach reflects her own experience as a founder in Northern Nigeria, where access to capital is significantly harder than in major hubs like Lagos. She recalls having to raise funds locally, without access to the networks that typically fuel early-stage investment.
“At the time, traveling to Lagos to fundraise wasn’t an option,” she says. “I ended up raising from a Northern-based family office, but it ultimately led to selling my company before we were ready.”
These experiences shaped Sabou’s mission: to bridge the financing gap for African businesses that don’t fit the high-risk, high-return VC mold, but still offer solid growth and meaningful impact.
Sabou is also gender-lens focused, prioritizing investments in women-led businesses. Ahmad emphasizes the disproportionate barriers women face in raising capital, despite data showing they often outperform.
“For every dollar invested in a woman, the return is typically double,” she notes. “Yet the networks and resources available to women are still limited. We want to change that.”
Regional Reach, Local Expertise
Sabou’s name is derived from “Sabo,” a Hausa word meaning “rebirth,” and reflects its commitment to renewal and renaissance in underserved markets. The fund will operate in Nigeria, Senegal, and Côte d’Ivoire, with Christian Amouo joining as General Partner to bring deeper insights into Francophone markets. Amouo previously led a fund in Cameroon, successfully backing several enduring SMEs.
Beyond capital, Sabou will offer technical assistance to help portfolio companies build strong foundations in corporate governance, financial management, and scalable operations.
Early Traction and Future Plans
With 20 companies already in its pipeline, Sabou plans to shortlist two to three firms for its first investment round, even as it prepares to launch its formal fundraising campaign in July.
“Our goal is to turn these SMEs into large enterprises,” Ahmad said. “We’re building a long-term model that supports businesses to scale sustainably and exit to larger funds or strategic buyers.”
Sabou Capital represents a new wave of purpose-driven investment—focused not just on returns, but on building lasting value across Africa’s most promising, yet underserved, business segments.
