Surayyah Ahmad, a seasoned entrepreneur and two-time cofounder, has launched Sabou Capital, a new SME-focused investment fund aiming to close the funding gap for high-potential small and medium enterprises across Anglophone and Francophone Africa. Positioned as a “micro-private equity” firm, Sabou Capital will invest between $350,000 and $1.5 million in 25 SMEs ranging from late pre-seed to Series A stages.
The fund is targeting businesses in agriculture and agroprocessing, renewable energy and climate, supply chain, logistics, and mobility—sectors vital to Africa’s real economy but often overlooked by traditional venture capital models.
A New Model for African SMEs
Unlike mainstream VC firms that chase high-risk, high-reward tech startups, Sabou Capital is taking a more grounded approach. It is focused on SMEs that are primed for scale but lack structured financial and operational support. These businesses may not be building disruptive apps, but they leverage technology to improve internal efficiency and service delivery.
Sabou Capital styles itself as a “micro-PE” fund, offering more modest return expectations—2x to 3x, compared to the 10x targets typical of venture capital. Its closest counterparts are firms like Aruwa Capital and Catalyst Fund, which are also adopting innovative approaches to financing Africa’s entrepreneurial ecosystem.
From Aduna to Sabou: A Shift in Vision
Ahmad previously co-founded Aduna Capital, which continues to operate as an angel investment group in Northern Nigeria. However, diverging views on growth strategy led to the birth of Sabou Capital. “Our team was aligned on the ‘what’ and the ‘why,’ but we underestimated the importance of aligning on the ‘how,’” she shared, emphasizing that even shared vision can diverge in execution.
The name Sabou is inspired by the Hausa word “Sabo” meaning rebirth or renaissance, with a French twist that reflects the fund’s dual geographic focus on Anglophone and Francophone markets.
Gender-Lens Investing and Personal Insights
Ahmad’s own experiences as an entrepreneur in Northern Nigeria have shaped Sabou’s inclusive mandate. “It wasn’t possible for me to travel to Lagos for fundraising. I raised from a family office locally but had to sell the company before we were ready,” she recounted. This lived experience has inspired Sabou Capital’s gender-lens investment approach, which will prioritize funding for women entrepreneurs.
“For every dollar invested in a woman, the return is 2x,” Ahmad said, underscoring the economic and social imperative to support female founders who often face disproportionate access barriers.
Cross-Regional Strategy and Local Expertise
Sabou Capital’s geographic spread includes Nigeria, Senegal, and Côte d’Ivoire—markets chosen for their growth potential and economic stability. While Nigeria remains the anchor, diversification is key as the country grapples with inflation and currency volatility.
To deepen its Francophone reach, Sabou Capital has appointed Christian Amouo, a seasoned private equity professional, as General Partner. Amouo brings proven expertise from Cameroon, where he launched his own fund and successfully backed four companies.
Beyond Capital: Building Investment-Ready Businesses
Sabou Capital goes beyond capital deployment. It will offer technical assistance, including help with financial management, governance structures, and operational systems. This hands-on support aims to make businesses investment-ready and position them for larger private equity exits or acquisitions down the line.
The firm is set to begin fundraising in July and already has a pipeline of 20 promising companies, from which two to three will be selected for initial investment. With a long-term ambition to scale across West and Central Africa, Ahmad envisions Sabou Capital playing a transformative role in turning Africa’s robust SME sector into a powerhouse of inclusive growth.
“Most African businesses aren’t built for VC. We need new models,” Ahmad asserted. “Sabou Capital is our response—a rebirth for how we fund and grow African enterprises.”