The Case for Local Investment
African investors have long advocated for more local capital on the continent. Their reasoning is simple: local investors understand the terrain better than foreign players. With that knowledge comes the ability to better navigate challenges unique to Africa.
It’s this belief that inspired Benue Capital—a sector-agnostic, early-stage venture capital firm focused on East African startups—to take action. The firm organized a summit in Uganda aimed at educating high-net-worth individuals (HNWIs) on the untapped value within Africa’s tech ecosystem. Notably, Benue is the first VC firm with Ugandan partners and LPs.
True ecosystem ownership starts with local investment,” said Marge Ntambi, a venture partner at Benue Capital. “International capital helps, but it often lacks a deep understanding of local dynamics. Local HNWIs bring more than money—they bring networks, experience, and genuine stakes in the outcome.”
Overcoming Skepticism Among Traditional Investors
Convincing wealthy Africans to pivot from familiar investments like real estate into tech startups hasn’t been easy. The risk profile is different—and the returns often take longer to materialize.
We debunk myths by highlighting success stories like Asaak,” said Ntambi. “They started by financing boda boda riders in Uganda and have since expanded into Latin America. Tech works here—the issue is that many local investors haven’t been close enough to see it.”
Why Benue Capital Targeted Local HNWIs
The team at Benue Capital noticed a growing disconnect: founders were seeking international funding while wealthy Ugandans stayed on the sidelines. Many preferred land and property, not equity stakes in startups.
It wasn’t about a lack of capital,” Ntambi noted. “It was about trust and awareness. We saw potential and set out to close that gap.”
The Three Big Barriers
Ntambi pointed to three major hurdles in convincing HNWIs:
- Lack of understanding
- Fear of losing money
- Unfamiliarity with the structure of startup investing
“We meet them where they are,” she explained. “We draw parallels between what they know—like land—and what venture capital can offer in terms of future upside.”
Dispelling Myths Around Tech
Many HNWIs think tech is only for Silicon Valley, or that you need deep technical expertise to get involved. Another common myth: African startups can’t scale.
“Those assumptions are outdated,” Ntambi said. “Tech works in Africa, and our founders are proving it.”
Teaching the Potential of Venture Capital
Benue Capital takes a data-plus-storytelling approach. First, they share investment return data from African startups. Then, they bring in success stories that hit home.
One powerful example: SioValley Technologies, a Ugandan startup tackling food preservation. Its organic spray extends the shelf life of produce—without refrigeration.
When local HNWIs heard this story at our summit, they paused. It was a Ugandan solving a Ugandan problem—and they missed the opportunity to invest.”
Lowering the Barriers with Syndicates
To make investing more approachable, Benue Capital recommends starting small via syndicates or co-investment models. These allow new investors to learn alongside seasoned angels and VCs.
You don’t have to go it alone,” said Ntambi. “We offer guidance, due diligence, and post-investment support. It’s about learning and growing together.”
Addressing Risk and Volatility
African markets come with real risks—currency fluctuations, exit challenges, and political instability. But Benue doesn’t sugarcoat it. Instead, they teach investors how to manage these risks.
For example:
- Favoring startups that earn in USD or operate in hedged sectors
- Encouraging diversified portfolios
- Educating on evolving exit paths like strategic M&A and secondary sales
Risk in Africa isn’t something to fear—it’s something to price and manage. When done right, it can be a source of opportunity.”
Impact or Returns? Why Not Both?
While most HNWIs initially seek financial returns, many find themselves drawn to impact. In Africa, the two often go hand in hand.
Solving problems like healthcare access or digitising informal markets isn’t charity—it’s highly investable,” said Ntambi.
Where to Focus: Sector Recommendations
Benue encourages first-time investors to diversify and explore multiple sectors. Exposure helps them understand where their interests and strengths lie.
They also highlight “problem-rich” sectors—like logistics, agriculture, health, and mobility—where the demand is clear and the impact is tangible.
Beyond Capital: The HNWI Advantage
Money is important, but HNWIs also bring decades of experience and deep-rooted networks.
They can open doors—regulatory, commercial, and operational—that startups can’t on their own,” said Ntambi. “Their involvement can be catalytic.”
The Role of Local Investors in Shaping Africa’s Future
Local capital doesn’t just fund startups—it shapes the direction of the ecosystem.
African investors help define what success looks like,” Ntambi explained. “When they lead, we move from dependency to leadership.”
Partnering with Ecosystem Players
Benue Capital collaborates with other VCs, angel networks, and accelerators to streamline investment pipelines. This network effect builds trust and expands opportunity for everyone involved.
The Rise of Syndicates and Angel Collectives
Interest in collective investing is growing fast.
When HNWIs realize they don’t have to invest alone, their confidence increases,” Ntambi said. “Syndicates provide a low-risk, high-learning environment.”
A Local Success Story
One HNWI returned to Uganda after years abroad and began attending founder meetups. That led to investing, co-founding a fund, and rallying peers.
He didn’t just cut a check—he built bridges,” Ntambi said. “That’s ecosystem-building.”
Lessons Learned from Both Wins and Misses
Ntambi noted that while education helps, what really moves people is social proof.
People follow people. That’s why we focus on building community, not just capital.”
Is Local Capital the Future?
Ntambi believes the shift is already happening.
Local capital signals belief in African potential. The more we mobilize it, the stronger and more relevant our ecosystem becomes.”
The Evolving Role of Benue Capital
As more local investors enter the space, Benue Capital’s role is shifting—from education to orchestration.
“We’re building trust networks and aligning capital with founders who can deliver both returns and relevance.”
Final Advice to Hesitant HNWIs
Start small—but start. If we wait for international investors to lead, we’ll always play catch-up. Early-stage investing is how we shape the future—not just watch it happen.
Policy and Ecosystem Recommendations
Coordination between funders and ecosystem support organizations (ESOs) is key. We need clearer alignment on what investors are looking for and what ESOs prepare founders for,” said Ntambi. “Better communication leads to better outcomes.”
Looking Ahead
Benue Capital’s mission is simple: build a Uganda—and an Africa—where local people fund the solutions to local problems.
“When local investors believe early and stay engaged, we turn missed opportunities into shared victories.”
