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NextFrontier Africa is a media platform spotlighting Africa’s emerging opportunities in technology, tourism, aviation, agriculture, health, logistics, real estate, trade, education, and e-commerce.

April 11.2025

2 Minutes Read

Why Africa's High-Net-Worth Individuals Should Invest Locally in Tech Startups

Young woman presenting at an event about investing in African startups.

Investing Locally: A Key to Africa's Economic Growth

African high-net-worth individuals (HNWIs) hold untapped potential as stewards of their local economies, particularly in the tech startup arena. Marge Ntambi, a venture partner at Benue Capital, emphasizes that local investments can ignite the continent's economic development, bridging the gap between abundant capital and the burgeoning tech ecosystem. The need for more local capital in Africa has never been clearer, and ever-present challenges are pushing for an increased focus on homegrown opportunities.

The Role of Local Investors

Ntambi argues that local HNWIs not only bring financial resources but also possess valuable connections and insights into their communities. "True ecosystem ownership starts with local investment," she states, highlighting how foreign capital often misses the nuances of African markets. Local investors investing in startups can create a lasting impact on their communities, aligning their personal legacy with the growth of indigenous businesses.

Overcoming Barriers to Tech Investment

Despite the clear benefits of investing locally, convincing wealthy Africans to move away from traditional investments remains a challenge. Ntambi identifies three significant hurdles: a lack of understanding of tech ventures, fear of losses, and discomfort with the fluid nature of startup equity. For many HNWIs accustomed to tangible assets, such as real estate, making the mental shift to embrace the risks associated with startups is no small feat.

Success Stories to Inspire Change

Benue Capital is actively addressing these challenges by showcasing local success stories such as Asaak, a Ugandan company that originally financed boda boda riders and has since expanded internationally. These narratives are critical to changing perceptions around tech investment. As Ntambi puts it, the issue isn't whether technology works in Africa; rather, it's about local investors experiencing it firsthand. By spotlighting real companies, Ntambi and her team aim to shift attitudes toward startup investing in Uganda.

Looking Ahead: The Future of Local Investment

The call to action is clear: local African investors should reconsider where they allocate their wealth, recognizing that the continent's future may lie in tech innovation. By supporting startups that address local challenges, they can directly influence their economy while also cultivating a sustainable legacy for generations to come.

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Why Africa's High-Net-Worth Individuals Should Invest Locally in Tech Startups

Investing Locally: A Key to Africa's Economic Growth

The Role of Local Investors

Overcoming Barriers to Tech Investment

Success Stories to Inspire Change

Looking Ahead: The Future of Local Investment

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