Sabou Capital launches $1.5M investment fund to bridge the funding gap for African SMEs
In an era where women are gaining increasing recognition in venture capital, Surayyah Ahmed, cofounder of Aduna Capital, is raising the bar with the launch of Sabou Capital, a new investment fund aimed at supporting small and medium enterprises (SMEs) across West Africa.
A long-time advocate for women’s participation in technology and entrepreneurship, Ahmed founded Sabou Capital to address the persistent funding disparities between tech-focused startups and SMEs in West Africa. Drawing from her personal experience navigating both English and French-speaking regions, Sabou is her brainchild to foster greater integration and inclusion in the African investment landscape.
With investment amounts ranging from $350,000—$1.5 million, the fund projects supporting 25 late pre-seed to Series A SMEs in agriculture and agro-processing, renewable energy, climate, supply chain, logistics and mobility sectors. These sectors are particularly vital for economic development, as they address both local needs and global challenges, such as food security and sustainable energy.
Sabou Capital positions itself as a “micro-private equity fund” dedicated to supporting steady-growth SMEs. Focusing on low-risk investments, the fund aims for a return profile of 2x to 3x, distinguishing itself from traditional VCs that typically target high-growth startups with expected returns of 10x. By prioritising sustainable growth over rapid expansion, Sabou Capital seeks to create a stable investment environment that benefits both investors and entrepreneurs.
The fund was established due to Ahmad recognising the gaps in accessing funding opportunities for local SMEs, prompting her to launch Sabou Capital with a broader mission—to empower local entrepreneurs who have the potential to drive change but often lack access to necessary resources.
Christian Amouo, an expert in Francophone markets, was made Sabou’s General Partner. His inclusion is crucial to aid the VC in recognising SMEs in underserved regions and sectors, including those in secondary cities across Nigeria, Senegal, and Côte d’Ivoire, who would benefit the most from the fund.
The name “Sabou” is derived from the Hausa word “Sabo,” meaning rebirth or renaissance, combined with a French tone. This symbolises the fund’s bilingual targeted focus and reflects its aim to help underfunded African SMEs grow. The choice of name also embodies the spirit of renewal and adaptability that Ahmad believes is essential for the success of African businesses in today’s dynamic market.
The fund provides not just capital but also hands-on support to enable SMEs to reach a regional scale. Ahmad emphasises, “We’re looking at SMEs with growth potential—not necessarily VC scale—but those with unmet demand that can leverage funding and technical support to grow.” This specification underscores the fund’s commitment to nurturing businesses that may not yet be in the spotlight but have the potential to flourish with the right backing.
With a gender-lens investment approach, the fund intends to deliver value in a unique way, prioritising women-led businesses. Ahmad believes that supporting women entrepreneurs is crucial for driving growth and fostering innovation. With women-led businesses delivering 35% higher returns than male businesses, investing in women-led enterprises not only promotes gender equality but also leads to higher returns on investment, making this strategy both socially and economically beneficial.
The impact of this approach extends beyond financial returns. Sabou Capital aspires to create a continual effect within local communities by empowering women entrepreneurs, generating jobs and improving livelihoods. Ahmad
believes that the success of women automatically affects the community they identify with, leading to enhanced access to education, healthcare, and other essential services, further uplifting communities.
Although Nigeria is their primary focus, the firm will also invest in Senegal and Côte d’Ivoire to diversify risk levels, especially given Nigeria’s high inflation, currency devaluation, and slower growth challenges. This strategic focus not only mitigates risks but also allows the fund to tap into the unique opportunities present in different markets across West Africa.
Funding is set to begin in July 2025, and Sabou VC has already identified 20 startups in its pipeline with plans to shortlist several for the first round of investments. The VC intends to identify innovative entrepreneurs who align with its mission and possess the potential for significant impact.
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