Capital raising is the process by which organisations secure funding to scale their activities; market expansion, product development and daily running of organizations. Capital raising in emerging and frontier markets is a complex and an up-hill task for most of organisations, with both challenges and optimism. Driven by high public debt, and structural barriers such as currencies instabilities, however, a potential in these markets is seen by the growing number of Gen-Alpha who are projected to be 35% of the global population by the year 2035, a report by Boston Consulting Group (BCG). Key Players include African Investment forum, African Development Bank (AfDB), international Financial Institutions (IFIs) and DFIs such as British International Investment (BII) and local and diaspora investors.
While there’s a blind in investment growth with high interest rates from the financial institutions, capital raising plays a crucial role especially in mobilizing capital to highly risky sectors such as education and health. A maturing private capital market in Africa is supported by rise in African institutional investors and an increase in private and infrastructure funds. For instance, African private capital fundraising doubled to USD 4.0 bn in 2024, reflecting an adapting ecosystem.
The key drivers in capital raising are; fintech growth and digital lending giving small and medium-sized enterprises (SMEs) and underserved populations access to capital. This includes mobile-enabled lending and crowdfunding. Secondly green infrastructure projects are increasingly being funded. An example is the Alliance for Green Infrastructure in Africa (AFIA-PD) Project Development Fund, which held a USD118.0 mn in 2025 fund to accelerate green infrastructure across the continent. Secondly, development finance institutions (DFIs) and impact investors are using blended finance to de-risk projects, attract private capital, and achieve sustainable development goals.
However, a myriad of challenges and barriers are still experienced; First structural issues due to underdeveloped financial infrastructure, inconsistent policies, and bureaucracy have made raising capital a daunting task. Second, high costs and risk perception mainly due to currency volatility has made capital raising in Africa unattractive especially to the foreign investors. Third, African economy is largely driven by the informal sector, with no particular financial structure turning away capital. Fourth, dependence on foreign funding thus a need to push for self-reliance.
The success of capital raising efforts in Kenya relies on transparency, strong financial planning, and the ability to demonstrate value to potential investors. As the financial ecosystem becomes more dynamic, businesses that understand the available funding options and align them with sustainable growth strategies will be better positioned to thrive in a competitive market.
