Impress, Invest, and Keep the Progress Flowing!
Africa Unplugged
It's finally Fridayyy! 🥳🎉
Before you unwind—or prepare for the weekend’s events 💃🏾— take a moment to catch up on trends and wins. Let’s close the week strong and stay ready for what’s next! 💡🚀
Here’s a quick pulse check on what’s been happening so far;
Spotify paid African artists $59M in 2024 (Nigerian artists led with $38M)
AU + UNESCO + ILO launch “CREATE” for better artist protections
Q1 funding hit $460M — but March dropped to a 5-year low
Francophone wins: Djamo ($17M) and Gozem ($30M) stand out
Sabou Capital & EU crowdfunding shift the investment playbook
The Creative Economy 😎
Africa’s Sound, Big Money; CREATE-ing Better Opportunities
Spotify’s royalty payouts to Nigerian and South African artists hit $59 million in 2024, reflecting a growing global interest in African music. With Nigerian and South African artists featured in millions of user-created playlists, their global reach continues to expand. Nigerian artists alone earned over $38 million in royalties, while South African artists saw a 54% y/y increase to $21 million, demonstrating the growing international appeal of African music.
On another front, the African Union (AU), ILO, and UNESCO have launched the Joint Programme CREATE to promote decent work in Africa's cultural and creative industries. With the majority of Africa’s creative professionals struggling with job insecurity and low wages, the initiative will focus on improving working conditions, fair pay, and social protection for artists. Its multi-level approach aims to harmonize policies, foster cross-border collaboration, and strengthen legal protections for creatives across the continent.
Africa’s Creative Economy Is Calling!
As more artists gain international recognition, the need for improved working conditions and fair compensation becomes more urgent. This creates investment opportunities in platforms supporting African artists, such as music streaming services and digital creative platforms, as well as ventures that align with the CREATE programme’s goals of enhancing legal protections and infrastructure for creatives.
The Startup Landscape 🚀
March Whimpered; Francophone Fintech Just Got Louder
Q1-2025 kicked off strong with nearly $300 million raised in January, but by March, funding had dipped to just $50 million—the lowest monthly figure since 2020. In total, startups secured $460 million across deals above $100,000, falling 5% short of Q1-2024’s $486 million. Yet, this still marks the second-lowest quarter in five years, with 83% of funding concentrated in the Big Four and only 2% going to female-led startups.
Djamo’s $17 million raise was a bright spot, not just as a win for Côte d’Ivoire, but as proof that Francophone Africa is demanding its seat at the table. Launched in 2020, the startup is tackling financial exclusion in Côte d’Ivoire with over one million users and a growing impact. Add Togo’s $30 million raise for Gozem, and it’s clear: overlooked doesn’t mean underperforming
Dear VCs, Your Map Needs Updating
So, what does this all tell us? While total funding declined, deal activity held steady, and new markets are rising. The play now has a deeper focus: more inclusive capital, regional investor backing, and a broader lens beyond the Big Four. It’s time to dig deeper, not pull back.
Venture Capital 📈
In a move to shift capital toward the continent’s underserved SME backbone, Surayyah Ahmad has launched Sabou Capital, a micro-private equity fund focused on scaling overlooked SMEs in Anglophone and Francophone Africa. The fund plans to invest $350,000 to $1.5 million in 25 businesses across sectors like agriculture, mobility, climate, and supply chains. With a gender-lens approach and a focus on secondary cities in Nigeria, Senegal, and Côte d’Ivoire, Sabou is prioritizing impact and sustainable growth over rapid tech-driven scaling.
Meanwhile, African cleantech startups are tapping a different kind of backer—crowdfunding from European retail investors. Platforms like Energise Africa, Klimja, and Republic Europe have facilitated millions in funding from retail investors for clean energy and sustainability projects across Africa. Notable examples include Roam Electric’s £173,750 bond for electric motorcycles in Kenya and Altech’s £334,750 solar initiative in the DRC—both offering investors fixed returns while supporting Africa’s energy transition.
Unicorns Aside, Let’s Talk Rerouted Capital
Both stories underscore how African founders are finding new ways to access capital, bypassing traditional VC limitations. Whether through Sabou’s hybrid fund or crowdfunding platforms in Europe, founders must prioritize governance, financial readiness, and cross-border strategy to attract and manage these funds effectively. As investors seek scalable impact, it’s time to rethink success beyond unicorns—towards sustainable, regional growth built for the African context.
📚Resources
Watchlist
Reading List
Success Stories in the Creative Industries in Africa and Other Emerging Markets
2024 Venture Capital in Africa Report
📈 Opportunities and Events 🎉
Greentech Africa 2025 is an investment-readiness accelerator program aiming to support startups in Egypt, Kenya, Nigeria, Senegal, and South Africa with innovative solutions for sustainable development. Apply here
Invest in Africa Summit is a business conference and exhibition that gathers 1000-plus key economic players and provides a unique platform to gain strategic knowledge about African investment opportunities and business networking. Register here