How to get capital for your small business in Nigeria and Africa +Top 20 Organization That Will Fund Your Business In Nigeria And Africa
PART A: How to get capital for your small business in Nigeria and Africa
Probably the greatest test for the forthcoming business entrepreneurs and new companies is financing.
Each business requires sufficient financing, and it’s not in every case simple to source startup capital.
Albeit the vast majority thinks about utilizing their own investment funds or requesting an advance from friends and family members, there are more advantageous approaches to raise capital.
In this post, we will take you through 5 smart ways on how to raise capital for your African business
These methods are not rocket science; they are likely what you might have known but surely they will work if done the right way.
How to get capital for your small business in Nigeria and Africa
Read on to discover what they are.
1. Angel Investor
This type of method of raising capital is mostly used by large businesses but also great for small startups.
Angel Investors are rich and grounded experts with a big interest in your business ideas.
Such financial specialists are typically prepared to fund your continuous endeavor or development — on the off chance that they discover your ideas are promising enough.
This certainly is another smart way on how to raise capital for your African business
For example, on the off chance that you have a promising business idea that could change the market, the Angel Investor will take a watch at the practicality of your ideas.
Doubtlessly, they will evaluate the monetary shrewdness of putting resources into your ideas.
At the point when they choose to fund, it’s a decent sign that you have a promising business idea.
For this financing alternative, you need to move toward the Angel Investor people group in your general vicinity.
Set up gatherings to introduce your business ideas. You may be amazed by the funds you get.
Angel Investors can be found in places like business meetings, seminars, conference meetings, religious/social organizations, angel investor networks,s and other places you can think a business-minded person should be.
2. Government Funding Programs
Government programs exist that give money to new businesses. You should simply introduce a simple and great marketable strategy to the award board.
When the arrangement is surveyed and affirmed, you will get the funds to begin your business.
The beneficial thing about government funding programs is that it’s typically considerable.
Certainly, this is another smart way on how to raise capital for your African business
You will have surplus capital at zero or exceptionally negligible loan fees.
This is obviously another smart way African Entrepreneurs can raise capital for their small business
3. Individual savings
This is by a wide margin the most ideal approach to raise capital for your business.
As a hopeful entrepreneur, you ought to have an individual monetary obligation to your business regardless of how little.
Without it, nobody would pay attention to you. A portion of some entrepreneurs had this to state about fund-raising without help from anyone else for their business.
There are a few different ways to raise individual investment funds. In the event that you have work, you should keep aside a portion of your compensation towards understanding your business objectives.
You just have to admit that this is another smart way on how to raise capital for your African business
On the off chance that you are jobless, discover a few administrations you can provide services for in return for cash.
Try not to be hesitant to get your hands to work, you are building something! Set aside the cash you get until it is sensible enough for you to move toward others for reserves.
4. A loan from friends and family
This is the subsequent best and most effortless method for raising capital for your small business.
At the point when you do this, ensure you have some close to home reserve funds so that individuals would realize you are not kidding. No one will put resources into you in the event that you don’t put resources into it yourself.
The rest is just sound judgment. For instance, in the event that you need to raise 20,000 naira, rather than asking one individual, ask 10 friends and family members to give you 2,000 naira each.
On the off chance that you don’t have 10 friends who can give you 2k, you are most likely not making friends with the right people.
Obviously, this is another smart way on how to raise capital for your African business.
Families certainly are the next set of people you have after yourself.
If anyone is going to believe in your ideas, it should be family. Provided your business ideas are great and promising.
5. Business Loan from Banks
Banks would be additionally ready to loan you cash in the event that you could show that you have begun the business and that it is practical.
You would be needed to meet a few specifications which frequently incorporate giving some guarantee and getting underwriters.
This might not be advisable but sure it is another smart way on how to raise capital for your African business.
Quite a lot of banks around have their different requirements for granting you a loan to start your business.
In the event that this choice works for you, by all apply for it. Obviously, you would have to show a great marketable strategy for the business.
Above are smart ways on how to raise capital for your African business.
Raising capital doesn’t have to be the hardest thing there is out there, you just need to have a good business idea along with a great business plan.
If you are able to get people to believe in your ideas, they will gladly give you the needed funds provided you will assure them of your business success.
There are quite other ways to get the required capital for your small but the ones above are quite the easiest and common ones there are among all others.
Do well to exhaust all your option before giving up on getting that capital for your business.
When you do get the capital, make sure you put all you’ve got to make the business a successful one.
PART B: Top 20 organizations that will fund your business in Nigeria and Africa.
As a young and promising entrepreneur, looking for ways to fund your business ideas is one of the first challenges you will likely facing when wanting to start a business in Africa.
Probably you think you have the idea of a business that will transform Africa or the world as a whole, and maybe you need funds to carry out such ideas. But where do you get the funds? You might wonder.
In this post, we will take a look at the top 20 organizations that will fund your business in Nigeria and Africa.
This organization offers grants to entrepreneurs with big ideas for starting a business.
Top 20 organizations that will fund your business in Nigeria and Africa.
Let see which organization they are.
1. Seedstars World
SeedStars World is one of the business grants offered to entrepreneurs from Africa. Seedstars Africa is an organization active in offering SME grants in over 53 countries in the world, especially regions like Africa, Asia, Middle East, and South America.
To access business grants from Seedstars, you will need to apply for the annually offered Business grant competition, competitive grants for young business owners and emerging markets.
These business grants for entrepreneurs from Africa help to identify promising business owners, organizations, and companies in the very need of capital, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
Basically, support Entrepreneurs who have a business in any African country
To build and support online businesses in Africa.
To fund web and mobile tech startups in Africa.
2. Shared Interest
This business grants for Africans is lending support to basically young entrepreneurs in Africa. Shared Interest was established in 1990 with the aim of financing artisans, farmers, and food producers in developing countries as a lending society founded situated in England.
Therefore, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
Shared Interest has a very large investment and satellite offices in major African countries like Ghana, Kenya, Costa Rica, Peru, and some Eastern Africa countries.
Having members investing about $1,000 from over 9,000 investors has helped provide a shared capital to support entrepreneurs in Africa with grants.
To support Entrepreneurs in Africa from developing countries.
Provided SME grants to make finance available to business owners such as food producers, farmers, artisans.
3. Tony Elumelu Foundation Entrepreneurship Program
The Tony Elumelu Entrepreneurship Grant is offered by the Tony Elumelu Foundation (TEF) to provide 10,000 aspiring African Entrepreneurs an opportunity to benefit from a $100 million grant to create 1,000,000 jobs and contribute $10 billion in annual revenues to Africa’s economy over the next 10 years
The Tony Elumelu Foundation Entrepreneurship grants Programme (TEEP), a Pan-African entrepreneurship initiative of the Tony Elumelu Foundation founded by a Nigerian billionaire investor is a multi-year program of training, funding, and mentoring, designed to empower the next generation of African entrepreneurs, making them one of the top 20 organization that will fund your business in Nigeria and Africa.
Provide finance to aspiring African entrepreneurs
Offer $100 million grant to create 1,000,000 jobs and contribute $10 billion in annual revenues to Africa’s economy.
African entrepreneurs who are business owners or startups with achievable innovative ideas.
4. Tshikululu Social Investments
Tshikululu Social Investments provides a wide range of social investment and business grants to Entreneurs residing in Africa.
The provider is a South African Corporate Social Investment (CSI) manager responsible for dispensing SME Grants to Africans.
Tshikululu Social Investments over the years is managing CSI funds of different organizations like Rand Merchant Bank Fund, De Beers Fund, and many others, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
To support entrepreneurs in Africa with SME grants
Provide Business grants to a wide range of business owners, companies ranging from community support and growth, arts and culture, healths, medical assistance, health care e.t.c
5. Lundin Foundation
The Lundin Foundation is one organization offering business grants. established by the Swedish family by the name of Lundin in the year 2005 to offer Entrepreneurs in African countries business grants, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
Lundin Foundation has its headquarters situated in Canada, but operate branches in these African countries- Ghana and Kenya.
Several business owners and entrepreneurs across Africa have received these business grants offered by Lundin Foundation.
Provide financial support to already established business, organizations around the world
Provide business grants, risk capital, and mentorship to business owners, companies across Africa.
6. Root Capital
Root Capital offers Business grants to empower entrepreneurs, businesses in Africa. Root Capital is a non-profit investment fund established in 1991 to positively provide funds and impact businesses, families in rural communities and bridge social interaction with business owners, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
Over 450 businesses have received grants worth $million dollars within the years of business grants offered. However, the policies have a 100% payback for the Root Capital investors.
Bridge business grant gap and promote rural development with business capital
Provide business training and sourcing funds options to strengthen small and medium-sized businesses.
Connect to agricultural business and deliver financial training including funds to strengthen and grow businesses in Africa.
7. Anzisha Prize
The African Leadership Academy’s Anzisha Prize provide young innovative African entrepreneurs with business grants if you are a founder of an established business venture.
Not only will you get business grants but leadership and entrepreneurial training for young Africans between the ages of 15 to 22 years. This is a perfect business grant for young innovative entrepreneurs in Africa be it any venture, business, and project.
To provide business grants to young innovative African entrepreneurs
Business mentorship for business owners of age 15 to 22 years.
8. Schwab Foundation
In order to advance social entrepreneurs across the globe, Schwab Foundation continually seeks business owners who are social entrepreneurs in different areas such as agribusiness, tech, health, education, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
The Schwab Foundation was established in 1998 as a social entrepreneurship firm situated in Geneva, Switzerland to provide business grants across the Africa region with rigorous selection stages which upon selection you will receive the business grant.
Provide grants to social entrepreneurs in areas such as education, agribusiness, health, technology e.t.c
Basically, fund social entrepreneurs after intensive screening with the business grants.
9. MEST Africa Challenge
Are you a young tech entrepreneur emerging in the tech industries? MEST Africa Challenge offers an annual Africa wide-pitch competition with a business fund of $50,000 in equity investment for startups, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
MEST Africa Challenge is a great business grant for entrepreneurs who are in tech business based in any of the country-Côte d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Sénégal, South Africa, and Tanzania.
The challenge is a unique search for African tech entrepreneurs and focuses on giving them coaching, business capital, wide networking with other entrepreneurs, startup.
To support African entrepreneurs with business investment capital.
Provide business grants to young emerging technology entrepreneurs in Africa.
10. Savannah Fund
The Savannah fund is also another fantastic option, as it provides startups, business grants to African entrepreneurs. Savanah fund has over time generated revenue of more than $8million as it focuses on nursery stage high growth technology entrepreneurs and startups in Africa.
Since it has been assisting entrepreneurs with business grants. It has records of support to African entrepreneurs from Kenya, Nigeria, Ghana, South Africa, and other neighboring countries.
To strongly bridge the business funding gap between venture capital investments and early startups and entrepreneurs in Africa.
11. She Leads Africa Accelerator Grants
This business grant is offered annually to female entrepreneurs between the age of 18-35 and has already businesses that need funding in Nigeria, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
The She Leads Africa Accelerator prize will raise your profile, have access to Nigeria funding, the best business minds in the country, and an opportunity for investment in your business.
The program duration is 6 months with a N2Million in investment capital to entrepreneurs who are females.
To provide investment capital of N2million
To give female entrepreneurs between the age of 18 to 35 with an existing business based in Nigeria, business fund, media coverage to boost profile.
12. Miss Africa Seed Grants for African Women in Tech Businesses
A US$5 000 business grant as a prize for the winner while a $1 000 grand prizes for finalists. Miss Africa Seed funding supports tech businesses owned by African entrepreneurs who are women/girls. The Business grants for African entrepreneurs is an initiative organized by DCA Academy offering funding as support to females in science-related fields.
If you are a current resident of any African country with demonstrated leadership potential as a company representative or social enterprise situated in Africa.
Then consider these grants are it supports STEM fields and related subjects, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
To provide grants to support women and girls who demonstrate leadership qualities.
Females in STEM fields and related subjects with a US$5 000 business grant as a prize for the winner while $1 000 grand prizes for finalists.
13. YALI Regional Leadership
The Young African Leadership Initiative (YALI) was launched to support African entrepreneurs and invest in the future generation businesses in Africa.
Basically, civil leaders, entrepreneurs, and business owners receive grants including other benefits such as leadership training, creativity, and innovation, effective communication as an entrepreneur, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
To provide business grants
Support African entrepreneurs between age 18 to 35 years
14. Ashden International Awards for Entrepreneurs in Developing Countries
Ashden International Awards for Entrepreneurs is one of the world’s biggest green energy business awards which provide innovative enterprises with the contribution of creating sustainable energy systems.
The entrepreneurship grants are open to non-government organizations, social enterprises helping to build a low carbon society now for future generations.
Business and social enterprises do receive $20, 000 and have to be based on the United Nations list of eligible countries. African countries are on the list of eligible countries so this gives you one privilege to consider this grant, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
15. African Entrepreneurship Award
The business grants are provided by BMCE bank of African with a focus to provide a platform for mentorship. SME grants to entrepreneurs in Africa for smart business ideas. African Entrepreneurship awards is another funding grants offered to African Entrepreneurs whose business are applicable to the African environment with social impact.
You can consider this business grant for Africans if you are a citizen of any African country and of age 18 years and above whose business fall into the categories of innovation & sports entrepreneurship, and sports entrepreneurship. You can choose this business grant as it offers $1million to selected African entrepreneurs.
16. GroFin Grants
Small and medium-sized business in Africa that are into manufacturing, agribusiness, education, healthcare and basic key services such as energy, water, sanitation do receive business grants and supports such as financial loans, making them one of the top 20 organization that will fund your business in Nigeria and Africa.
GroFin Grants is a private financial institution with the aim of providing businesses and enterprises in Africa with medium-term financial support. Ever since it was launched in 2004, it has provided business support to over 700 small and medium enterprises and helping to sustain jobs in some countries in Sub-Saharan African and MENA regions.
To provide financial support to business and enterprise in Africa
Offer financial loans to medium-sized businesses in manufacturing, agribusiness, education, and healthcare.
17. African Women Development Fund
The business grants are provided to support organizations that are women-led or tackling issues of female rights, security, and justice.
African Women development funding is a Pan African female grants that support any organization that strives to support women right and participation for peace.
The business must have been in existence for up to 3 years, registered and located in an African country, led by a woman, and have a structured organization board for effective project implementation.
Provide funds to business/organization registered and situated in an African country
Offers fund to business/enterprise that is led by women and tackling women’s rights, security, and justice in their country/region.
18. Unilever Young Entrepreneurs Award
These business grants support innovative entrepreneurs tackling some world challenges, specifically the globe sustainability goals, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
Unilever young entrepreneurs award can be the perfect grant for you if you a social entrepreneur with impact and need supports as funds to scale your business, enterprises to the next level.
These business grants for African entrepreneurs have fund lots of businesses and reached a large number of young entrepreneurs through funding and support.
To provide business grants to innovative young entrepreneurs
To support social entrepreneurs with funds to scale businesses tackling world sustainability challenges.
19.Innovation Prize for Africa
Innovative prize is one of the grants for African entrepreneurs. The business grants are aimed to encourage an innovative driven solution to the challenges in Africa, making them one of the top 20 organizations that will fund your business in Nigeria and Africa.
Have an idea or solution to a critical challenge affecting Africa countries. Innovation prize for Africa is a platform to help you amplify your voice and innovative solution to the challenges faced.
So you need funding, then apply for the innovative prize for Africa, if you have a business idea or solution that is impactful to Africa.
The award support innovation-driven ideas and business that solve challenges in Africa.
20. African Women Innovation and Entrepreneurship (AWIE)
This program seeks to provide business grants to accelerate entrepreneurship that is a female-led organization. AWIE is among the entrepreneurship grant platforms that support and provide funding to innovative, creative female entrepreneurs across the African region.
Each year AWIE recognizes and support females in private non-profit businesses in Africa doing tremendous change and impacting the economic growth of Africa, making them one of the top 20 organization that will fund your business in Nigeria and Africa.
To support women-led organizations registered in any African country.
Award-nominated female entrepreneurs in some award categories.
As an entrepreneur and startup, you can get business grants and fundings to support and scale up your enterprises if your business is registered and located in any African country.
The above business grants for African entrepreneurs are the top grants available to entrepreneurs in the African region.
Take advantage of this wide range of business grants and apply for the latest ongoing and opened business grants.