The world is once more navigating uncertainty as conflict spreads across the Middle East. Beyond the immediate human and environmental tragedies, fluctuating energy markets and impassable trade routes are creating massive global ripples. From investor appetites to currency stability to peace itself, we’re watching closely to assess how geopolitical developments may impact Africa’s economies.
Alongside these global concerns, our team has also been reading about structural trends shaping Africa’s investment landscape.
Systems change for startup success
In a recent Digital Business article, Ayuk Etta makes a compelling argument: Africa doesn’t necessarily need more startups; it needs better infrastructure and enabling systems. This immediately rings true to many of us working in the impact investment space. Innovation is important, but even the most genius of startups will struggle to scale without broader systems supporting them: reliable logistics networks, digital payments infrastructure, access to finance, and supportive regulatory environments.
That’s why Goodwell is increasingly thinking not only about who to invest in, but how to invest. To enable lasting impact, we need to support holistic, systemic improvements. Access to the right type of capital, structured in the right way to support growth, can be just as important as the product or service the business offers.
A changing venture capital landscape
The growing understanding of enabling systems isn’t the only shift happening in Africa’s venture capital landscape. Development finance institutions (DFIs) have long been a key source of Africa’s venture funding, accounting for 45% of VC commitments between 2022-2024. In 2025, DFIs accounted for only 27%.
Local funders are stepping in to fill that gap. African corporates are increasing their participation in venture funds, signalling a potential shift toward more locally anchored investment ecosystems. This change may encourage alternative financing models better suited to the realities of many African businesses, like flexible or non-dilutive capital, more closely aligned with sustainable growth.
Challenging gender bias in Africa’s investment space
Looking at investments through a gender lens is a familiar topic in the Goodwell community, and is growing in popularity in the investment sector. Progress is being made. In spite of this, female founders still face an implicit gender bias, and receive a disproportionately small share of venture funding. Women-led businesses often face greater barriers to accessing capital, even when their fundamentals are strong. Addressing this gap is not only about fairness: studies consistently show that diverse founding teams can deliver strong financial performance alongside meaningful social impact. Investors need to be deliberate in their actions on gender inclusion, from their sourcing strategies, to diversifying investment teams, to deploying financial structures specifically designed to support overlooked entrepreneurs.
Agriculture as a driver of sustainable growth
Keeping gender-inclusive investing in mind, the Brookings Institution’s recently published Foresight Africa highlights agriculture’s central role in sustainable development on the continent. The sector employs much of Africa’s population – with women representing a large share of that workforce – and makes significant contributions to many nations’ GDPs, women also make up a large share of the agricultural workforce.
Strategic investment in agriculture can create far-reaching impact, from increased food security and job creation, to boosting rural incomes and empowering women. Mechanisation and modernisation, in particular, are emerging a key priorities; expanding access to modern farming equipment can help increase productivity while reducing labour burdens. For investors, agriculture represents a significant opportunity to drive sustainable, inclusive growth, while strengthening one of the continent’s most important sectors.
