A significant shift is transforming how Africa’s development is funded, moving from traditional charity to a powerful blend of profit and purpose. At the recent African Venture Philanthropy Alliance conference, leaders highlighted that philanthropists and impact investors are now eager to deploy capital, but they demand projects that deliver both transformative social impact and commercial viability. This strategy relies heavily on blended finance, where philanthropic grants or guarantees are used to de-risk ventures, thereby paving the way for larger private investment. The goal is to catalyze capital for crucial sectors like climate resilience, healthcare, and fintech. Experts argue that this model is essential, as “Africa cannot grant its way to prosperity.” By addressing market gaps and flawed risk perceptions, this strategic capital aims to unlock billions and build a more sustainable, self-reliant future for the continent, making the investment case stronger than ever.
African Business
