African investors often champion the need for more local capital on the continent. Their argument is straightforward: local investors have on-the-ground knowledge and are better positioned to navigate local challenges than foreign investors operating from afar.
It’s this belief that inspired Benue Capital, an early-stage, sector-agnostic VC firm investing in East African startups, to organise a summit educating Ugandan high-net-worth individuals on the value of Africa’s tech ecosystem. Benue Capital is also the first VC firm with Ugandan partners and LPs.
“We believe that true ecosystem ownership starts with local investment. While international capital can accelerate growth, it often lacks a deep understanding of local dynamics and on-the-ground realities,” Marge Ntambi, venture partner at Benue Capital, told TechCabal.
“Local high-net-worth individuals, on the other hand, bring not only capital but also strong local networks, business experience, and a real stake in the success of the ecosystem. When they invest, they’re investing in their communities, their economy, and their legacy,” she added.
But convincing wealthy Africans to shift from familiar investments like real estate and brick-and-mortar businesses to tech startups isn’t easy. Startup investing comes with higher risk and longer return timelines, even though it offers the potential for outsized gains.
“We push back on these myths by spotlighting companies like Asaak, which started in Uganda by financing boda boda riders and has since expanded into Latin America, acquiring a Mexican mobility startup in the process. That’s a Ugandan-born tech company solving real problems and scaling across continents. The issue isn’t whether tech works here; it’s that most local investors haven’t been in the room to witness it,” Ntambi told TechCabal.
I spoke to Marge Ntambi to understand Benue Capital’s process of convincing local HNIs to invest in African startups and the decision to go after them.
This interview has been edited for length and clarity.
How did you initially identify the untapped potential of HNWIs within Africa, and what made you decide to pursue this path?
It started with one simple observation. Every missed opportunity was someone else’s win. We saw local founders turning to international investors to fill their rounds because, outside of grants, there were few avenues to access equity financing within the local market. Meanwhile, wealthy Ugandans, many of whom regularly invest in land and property, remained on the sidelines of the tech economy. The disconnect was too glaring to ignore. There was clear capital on the table, but it wasn’t flowing into the businesses shaping the future. That’s when we realised the real challenge was awareness and trust and that mobilising local capital would require building both.
What are the biggest hurdles you encounter when convincing HNWIs to invest in the tech startup space?
Three key challenges stand out: lack of understanding, the fear of losing money, and discomfort with the structure of startup investing.
Most HNWIs are used to tangible assets like land, buildings, or traditional businesses that they can control, value easily, and exit when needed. In contrast, tech startup investments are mostly equity-based and illiquid and come with long time horizons. That mental shift from fixed assets to future upside requires a different kind of risk appetite. Our job is to bridge that gap and show that, when done right, this kind of smart risk-taking can yield outsized returns.
What misconceptions about tech investing do you most commonly have to dispel?
That it’s only for Silicon Valley, that you need deep technical expertise to get involved, and that African startups don’t scale. The issue isn’t whether tech works here; it’s that most local investors haven’t been in the room to witness it.
How do you educate traditional investors about the potential returns and broader impact of venture capital investments in technology?
We meet them where they are by comparing venture capital to what they already know. For example, we break down how investing $100K in a promising startup is not unlike buying a plot of land. It appreciates over time, but the upside can be significantly higher if the business scales. We walk them through return data from Africa-focused deals, showing how a few successful bets in a diversified portfolio can more than make up for the losses. We also explain timelines and why venture capital requires patience but can deliver outsized returns.
Ultimately, what gets them over the line is the stories and founders they could’ve backed that make it real. When we show them how companies like Asaak or SafeBoda started here and scaled regionally or even globally, it hits different. It’s no longer theory. It’s a missed opportunity they could’ve owned.
Do you use case studies, success stories, or data-driven pitches to illustrate the opportunity in African tech?
Data opens the door. Stories close the deal.
One of the most powerful examples we showcased at our recent HNWI Summit in Kampala was SioValley Technologies, a Ugandan startup founded by a graduate of Uganda Christian University. The founder created an organic, plant-based spray that extends the shelf life of fresh produce without refrigeration, solving a very real problem for farmers, exporters, and consumers in a country where post-harvest loss is staggering.
After receiving early support from Acumen, the founder was able to build a facility in Ntinda to serve exporters. Later, he brought on a co-founder, restructured operations to reduce costs, and expanded access to smallholder farmers, exporters, and retailers. The team has gone on to raise more financing, mostly from non-Ugandan investors.
When we shared this story at the summit, it made local HNWIs stop and reflect: “This was a Ugandan founder, solving a Ugandan problem, and we weren’t at the table.”
Are there investment vehicles or syndicate models that make it easier for HNWIs to dip their toes into tech investing?
Yes, and making the entry point simple and low-risk is key. We often recommend starting with syndicates, where HNWIs can co-invest alongside more experienced angel investors.
We also encourage co-investment models with VCs like us, where HNWIs benefit from our due diligence, deal sourcing, and post-investment support. This way, they’re not going it alone; they’re learning while investing. Messaging to an HNWI that their only path to investing in venture capital is to become a full-time angel investor is overwhelming. Instead, we encourage a low-friction pathway to participate in high-potential opportunities backed by local insight and professional guidance.
How do you address concerns about market volatility, currency fluctuations, and exits in African tech?
We take these concerns seriously and so do the best founders and fund managers. Rather than brushing risk aside, we help investors understand how to manage it in a way that’s practical and informed by the realities of African markets.
On currency risk, we look closely at startups’ revenue models. Many of the more resilient companies are either earning in USD, pricing their services in USD equivalents, or operating in sectors with strong natural hedges. Additionally, we assess where the startup is storing its cash and how it’s managing FX exposure, especially in high-volatility environments.
On market volatility, we advise HNWIs to think in portfolios, not single deals. We encourage diversified bets across sectors, stages, and even regions. It’s the same logic as any investment strategy: don’t try to predict the short-term swings. Position yourself to benefit from long-term trends.
On exits, we walk them through the evolving playbook in Africa. Yes, IPOs are rare, but we’re seeing growth in secondary sales, private equity acquisitions, and strategic M&A. More importantly, we help them understand what makes a company exit-ready from day one: clean cap tables, sound governance, and clear pathways to scale and profitability.
Ultimately, the message is that risk in Africa isn’t something to fear; it’s something to understand and price appropriately. When managed well, it becomes a source of opportunity rather than a deterrent.
Are these HNWIs primarily looking for financial returns, impact returns, or a blend of both?
Most are looking for financial returns first but they’re also drawn to the idea that in Africa, impact and returns are often two sides of the same coin. Once we show them that solving real problems, like access to healthcare, financial services, or digitising informal sectors, isn’t charity but highly investable when founders leverage technology, the mindset shifts. What starts as curiosity about impact often matures into conviction: “If this works, it doesn’t just help people, it makes money too.” So yes, it’s a blend, but the powerful part is how naturally the two align on this continent.
Do you recommend a focus on specific verticals?
For first-time investors, diversification is essential, not just for risk management, but for learning. Exposure to deal flow in multiple sectors helps HNWIs understand what resonates with them, where they can add strategic value, and what risk-return profiles they’re comfortable with. We direct HNWIs toward problem-rich, high-potential sectors where Africa’s structural gaps create investable opportunities. These are verticals where both the demand and the impact are obvious, and where traction often signals real resilience.
Beyond writing checks, how do you see local HNWIs contributing to the startup ecosystem?
Capital is just the starting point. What many HNWIs bring is far more valuable: decades of operational experience, deep sector knowledge, and trusted networks that can unlock doors founders can’t open alone. Whether it’s navigating government regulation, securing enterprise partnerships, or optimising supply chains, these are areas where HNWIs have real leverage. When paired with early-stage innovation, that knowledge becomes catalytic. In many cases, an HNWI’s support can accelerate customer acquisition, talent recruitment, or even follow-on funding.
What role do you believe local investors should play in shaping a more robust, sustainable innovation ecosystem on the continent?
A foundational one. Local capital doesn’t just fund startups; it defines what gets prioritised, who gets empowered, and how success is measured. If we want startups solving problems that actually matter to African communities, we need African investors at the table. They bring not only capital but also cultural context, long-term commitment, and accountability to local outcomes.
When local investors lead, the ecosystem shifts from chasing foreign benchmarks to building African solutions with global relevance. That’s how we move from extraction to empowerment and from dependency to leadership.
How do you collaborate with venture capital funds, angel networks, or accelerator programs to streamline deal flow and diligence?
We view collaboration as a multiplier. We actively plug HNWIs into our broader network so they’re not investing in isolation. Sometimes, that means co-investing alongside us or other VCs. Other times, it’s providing strategic support to founders. What matters most is alignment. We ensure that anyone we introduce into a deal shares our values around founder support, long-term thinking, and ecosystem-building. Done right, this creates a flywheel of trust and opportunity that benefits everyone in the value chain.
Have you seen a growing interest among HNWIs in forming syndicates or joining angel collectives to pool resources and share risk?
Absolutely, and interest is turning into action. Once HNWIs realize they don’t have to take the plunge alone, their hesitation drops significantly. Syndicates offer a lower-stakes entry point, shared due diligence, and the chance to learn alongside peers. We’ve seen the biggest shifts when a respected peer shares a success story. It validates the model. More importantly, it builds community around startup investing, transforming it from a solo act into a collaborative, confidence-building journey. The demand is there. We (meaning all funders in the ecosystem) just have to keep making the on-ramp accessible.
Can you point to a success story of an HNWI you worked with who made the leap into tech investing and saw strong returns or meaningful impact?
One of the most powerful stories we’ve seen didn’t start with a check, it started with curiosity. After years abroad, an HNWI returned home to Kampala and began reconnecting with the business landscape. What began as a few casual founder meetups quickly turned into deeper engagement, listening to pitches, offering guidance, and seeing firsthand the grit and ambition in the ecosystem.
That proximity built conviction. He didn’t just invest, he co-founded a fund, brought others into the fold, and became a bridge between traditional capital and next-generation innovation. That’s what we mean by ecosystem building. One person stepping in can unlock momentum far beyond a single deal.
What were the key drivers of that success, and what lessons could others learn from it?
It’s three things. Proximity to founders builds trust, empathy, and sharper judgement. Investing through a syndicate or fund, which lowers pressure and distributes risk and, above all, alignment of values.
In this case, it wasn’t just about chasing financial returns; it was about backing the talent, grit, and vision of young entrepreneurs solving real African problems. That kind of alignment transforms capital into something more enduring, a true partnership with shared stakes in the future.
Conversely, have there been disappointments or lessons that changed your approach when pitching to or guiding HNWIs?
What we’ve learned is that sometimes, education alone isn’t enough. What moves people is social proof, hearing from peers who’ve done it, succeeded, and are still excited about the journey. That’s why we focus just as much on building community and conviction as we do on building pipelines. Because people don’t just follow opportunities, they follow other people they trust.
Do you see local capital becoming a major force in Africa’s tech funding landscape over the next 5–10 years?
Absolutely. It’s no longer a question of if; it’s a question of how fast we can accelerate the shift. Local capital is not just a funding source; it’s a signal. It tells founders, policymakers, and global investors that Africa believes in its own potential. The more we build local confidence, capability, and coordination, the more we unlock capital that understands context, supports long-term outcomes, and reinvests in local success.
How do you envision your role evolving as more local stakeholders enter the startup investment space?
As the ecosystem matures, our role moves beyond education into activation and orchestration. We’re no longer just translating venture capital to first-time investors; we’re designing structures, building trust networks, and aligning capital with founders who can deliver both returns and relevance. Benue is bringing together investors, founders, policymakers (in the future), and institutions to build something lasting.
What advice would you give to African HNWIs who are still hesitant about allocating capital to early-stage ventures?
Start small, but start. The only way to build an investable ecosystem is to participate in it. If we keep waiting for international players to take the first step or absorb all the risk, we’ll always be playing catch-up in our own markets. You don’t need to have all the answers, you just need the right partners, a willingness to learn, and the vision to see what’s possible before it becomes obvious. Early-stage investing is how we shape the future, not just watch it unfold.
From your perspective, what policy reforms or ecosystem-building efforts would most accelerate the pace of local investments?
In Uganda, one of the biggest opportunities is alignment and transparency.
ESOs (accelerators, incubators, entrepreneur networks) are doing the heavy lifting to get founders investment-ready. But too often, there’s a disconnect between what they prepare founders for and what VCs are actually looking for.
We need to close that gap. I’ve personally made a point of being clear about my thesis, stage, and expectations so ESOs can tailor their programs in ways that lead to funding outcomes from the funds I work with. This kind of honest coordination between capital and capacity builders is low-hanging fruit and if more VCs joined in, we’d see a faster pipeline of truly investable companies backed by local capital.
Looking ahead, what do you hope to achieve regarding capital mobilised and overall impact on the African tech sector?
We want to help build a Uganda, and an Africa, where the people who live the problems are also the ones funding the solutions. Where capital doesn’t just chase opportunity, it shapes it with purpose. We envision a future where missed opportunities become shared victories because local investors believed early, stayed engaged, and helped build companies that matter.
