Sabou Capital, a new SME fund launched by Surayyah Ahmad, the co-founder of Aduna Capital, seeks to provide much-needed financial backing to businesses in West and Central Africa.
“We are more of a hybrid—looking at SMEs with growth potential, not necessarily VC-scale, but with unmet demand that can leverage funding and technical assistance to grow,” Ahmad explained, setting Sabou apart from firms focusing solely on high-growth startups.
The fund plans to invest between $350,000 and $500,000 in 25 SMEs across sectors such as agriculture, renewable energy, logistics, and mobility. The goal is to bridge the funding gap faced by late-stage pre-seed to Series A SMEs that are primed for growth but lack structured financial support.
The name “Sabou,” inspired by the Hausa word “Sabo,” meaning rebirth or renaissance, reflects the fund’s aim to revitalise African businesses with strong growth potential. Sabou Capital takes a unique approach, investing in companies that utilise technology to optimise operations rather than those that are purely tech-driven, distinguishing it from traditional venture capital firms.
Sabou aims for a 2-3x return on investment, a more modest goal than the high-risk 10x returns typically sought by traditional venture capital. This strategy places Sabou Capital as a micro-private equity firm, competing with established organisations like Aruwa Capital and Catalyst Fund.
Ahmad’s decision to launch Sabou came after differences in vision at Aduna Capital. Speaking on this, he said, “Our team was well aligned on the ‘what’ and the ‘why,’ which many co-founders consider the most crucial, while little focus was given to the ‘how.’” He further noted, “This was a learning point for me as I discovered that even the scale of impact one wants to make differs from person to person.”
A key feature of Sabou’s strategy is its gender-lens investment approach, prioritising women entrepreneurs. Ahmad highlighted the financial advantages of investing in women-led businesses: “For every dollar invested in a woman, the return is 2x,” he said.
Recognising the limitations women face in securing funding, he shared his own experience, stating, “It wasn’t possible for me at the time to travel to Lagos for fundraising. I ended up raising from a family office in Northern Nigeria, which ultimately led to selling my company before we were ready.”
In addition to funding, Sabou Capital offers technical assistance to ensure its portfolio companies are investment-ready, focusing on corporate governance, financial management, and operational systems. “We provide support to make sure these businesses are investment-ready,” Ahmad emphasised.
Sabou is expanding beyond Nigeria, with plans to invest in Senegal and Côte d’Ivoire, economies with projected growth rates above 6% and currencies pegged to the Euro. Ahmad explained the decision to diversify: “As Nigeria grapples with high inflation, currency devaluation, and slower growth, we decided to leverage the expertise of the founding team to diversify our risk.”
The firm’s recent addition, Christian Amouo, a private equity expert with a strong background in Francophone markets, will play a huge role in driving Sabou’s expansion. Amouo previously launched his fund in Cameroon, investing in four companies, three of which are still operational.
Sabou Capital has yet to begin formal fundraising but has already identified 20 startups in its pipeline. The fund plans to shortlist two to three companies for its first round of investments, with plans to scale across West and Central Africa.
“The goal is to scale this model across West and Central Africa,” Ahmad said, outlining the fund’s long-term vision to help SMEs grow into large enterprises, ultimately attracting investments from larger private equity firms or strategic buyers.
