Firm growth in Africa depends not just on founder ideas but on building capable teams, developing local managerial talent, and equipping people with the skills needed to scale sustainably. Key gaps remain in identifying high-potential founders early, supporting team formation, retaining skilled local managers, and building the institutional capacity to harness AI in ways suited to African market realities.

African venture and private equity markets often fail to form not due to a simple lack of funding, but because of coordination failures where skilled managers, credible exits, and willing private investors are all missing simultaneously. Development finance institutions can play a catalytic role in resolving these failures, but must carefully time their interventions and design instruments that crowd in rather than displace private capital, supported by more rigorous evidence on what actually works.

Currency volatility in African markets shapes development outcomes by determining who can access capital and on what terms, with firms in shallow financial markets often forced to choose between expensive local-currency finance and exchange-rate risk from foreign-currency debt. Addressing this requires both better micro-level evidence on how FX risk flows through households, firms, and investors, and policies that can expand financing access without simply redistributing risk.