5. WHAT IS YOUR
Are you selling investors the
narrative of HIGH SOCIAL IMPACT
or HIGH POTENTIAL MARGINS
6. It is crucial that a
business is able to
achieve scale and
exploit an opportunity in
the market. This makes
for a good business
case for an investment.
HOW SCALABLE IS THIS CASE?
7. HOW MUCH DO YOU NEED?
WHEN? AND FOR WHAT USE?
Investors wants to see how exactly their
investments is meant to impact the business.
It is important to be clear on the specific
business needs an investment is to address.
9. INVESTMENT TYPE
It is crucial to understand the
differences between both options and
the implications on your business.
Understanding the current status of
your business and choosing the right
kind of funding.
Debt vs Equity
10. What have you done so far with what you have?
Investors want to see that your product or
service has started that “hockey- stick”
adoption rate, which implies :-
• A large market
• A valid business model and,
• Sustainable growth.
11. What is that in
How can you improve your current cashflows:
• Increase Revenue
• Reduce Cost
16. Types of Funding Available for Businesses
Family, Friends &
Non Bank Financial
(Excludes commercial/bank loans)
18. The Africa Enterprise Challenge Fund (AECF) is a US$ 256 million private sector
challenge fund that provides catalytic funding to enterprises in Sub-Saharan
Africa. The fund also supports innovative commercial businesses in the
agribusiness sector. AECF runs challenge windows at different times in the year
along different themes which businesses can benefit from. Some companies
that have benefited from AECF in Nigeria include: AACE Foods and DADTCO
Availability of grants and challenge
funds for businesses in Nigeria
There are several Africa focused challenge
funds that aim to support innovative
commercial businesses in certain sectors
with the aim of reducing rural poverty,
promoting resilient rural communities and
creating jobs through private sector
19. Availability of Federal Government intervention
funds for businesses in Nigeria
These banks provide a number of Federal Government sponsored
loans to SMEs across different sectors and value chains. The loans
offer single digit interest rates. The BOI YES programme is one of such
platforms for obtaining single digit debt financing.
The MSME Development Fund launched by the CBN is targeted at
SMEs and micro-enterprises. Eligible activities to be financed include
agricultural value chain, services etc. Loans are to be disbursed by
microfinance banks at single digit interest rates.
Although targeted at large commercial enterprises in the agriculture
sector, the anchor borrowers programme allows agribusinesses and
small farmers who are involved in primary production and who make
up the value chain of companies in the agriculture to benefit from
single-digit debt financing.
20. Support of Non-bank financial institutions
Non-Bank financial institutions are able to provide short-mid term debt
financing for SMEs with good credit standing. To successfully receive funding
from these institutions you will need a business plan and comprehensive
financial records. Examples of companies in the space include GroFin.
Grofin provides financing and loans for SMEs in Africa,
especially those with a track record of success and a
need for financing to pursue expansion opportunities.
• Review of Application and Approval
• Funds Disbursement
• Ongoing support and Monitoring
Their application process encompasses
the following steps:
21. Availability of non-conventional
sources of funding for businesses
Crowdfunding is the practice of funding a project or
venture by raising monetary contributions from a large
number of people. There are certain platforms in
Nigeria that businesses can leverage on to get
crowdfunding from sponsors.
22. • Sahel Capital is fund manager for Fund for Agricultural Finance in Nigeria (“FAFIN” or the “Fund”), an
agribusiness focused SME private equity fund.
• FAFIN uses blended finance to fund SMEs in Nigeria, generating commercial returns and achieving social
impact in the process.
PE & VC Firms Fund Businesses in Nigeria
Typically target mature businesses
The Fund also has a separate funded technical assistance facility from donors, with which to provide capacity building and
technical support services to investee companies.