In the heart of Africa’s burgeoning economy lies a critical challenge: a staggering $331 billion funding gap for Small and Medium-Sized enterprises (SMEs). These businesses form the backbone of African economies, contributing up to 50% of GDP and around 80% of employment.
In Africa, SMEs account for 95% of all businesses. With the continent’s population predicted to double by 2050 – accounting for more than a quarter of all people on the planet – harnessing the potential of SMEs to drive employment, provide products and services, and ensure shared prosperity is critical.
Yet, unlocking financing for Africa’s SMEs has proven to be a significant challenge. Ghana, historically, one of Africa’s best-established economies, faces a financing gap of around $4.8 billion – one of the largest in Africa – for its SMEs. This gap not only represents a threat to Ghana’s long-term economic growth but also threatens its resilience in the face of social and environmental challenges.
Deal Source Africa (DSA) is tackling this challenge of SME financing head-on by reshaping the landscape of SME financing across the continent with several innovative approaches:
Hybrid deal rooms: Deal Source Africa goes beyond traditional digital matchmaking by combining a comprehensive online platform with in-person and virtual Deal Rooms. This creates dynamic spaces for meaningful engagement between SMEs and potential investors, bridging the gap between digital convenience and the irreplaceable value of face-to-face interactions.
Transaction advisory services: Recognising that many SMEs struggle with more than just accessing capital, Deal Source Africa provides experienced Transaction Advisors (TAs) to support businesses throughout their fundraising journey. We have also piloted a transaction advisory subsidy programme, which subsidises the cost of transaction advisory services for qualifying businesses. With the TA subsidy, Deal Source Africa picks up a portion of the cost of advisory services required to facilitate a deal while the business commits to settling the remainder. The business is required to pay back the money after it secures funding or after an agreed period of time. TA services extend to improving internal governance, corporate structures, and compliance – essential elements for attracting investment and ensuring long-term business success.
Investment readiness training: In partnership with enterprise associations like the Association of Ghana Industries (AGI), Deal Source Africa conducts intensive investment readiness sessions. These equip businesses with the skills and knowledge needed to engage effectively with private funds, addressing a critical gap in the ecosystem.
Early-stage funding: Deal Source Africa bridges the gap for early-stage businesses by connecting them with angel investors through networks like the Ghana Angel Investor Network. This opens up funding avenues for businesses that might be too early-stage for traditional impact funds, addressing a critical point in the SME growth cycle.
Comprehensive investment ecosystem: By integrating these services – from investment readiness to deal facilitation and post-investment support – Deal Source Africa creates a holistic ecosystem that supports SMEs at every stage of their funding journey.
The genesis and development of Deal Source Africa
Deal Source Africa was piloted in 2022 and launched in May 2023 at the West Africa Deal Summit, marking a shift in how African businesses connect with capital. The platform was developed with support from the Research and Innovation Systems for Africa (RISA) Fund, which is a UK International Development initiative aimed at strengthening research and innovation systems for economic development in Ethiopia, Ghana, Kenya, Nigeria, Rwanda and South Africa. Deal Source Africa is the result of a dynamic collaboration between Impact Investing Ghana (IIGh) and the Impact Investors Foundation, Nigeria (IIF), exemplifying the power of cross-border cooperation in addressing shared challenges.
Impact and early successes
The first year of operation saw a significant impact as the initiative closed a deal worth US$139,000. As of August 2025, Deal Source Africa has facilitated the closing of eight deals totalling US$2,091,005, with at least another US$8 million worth of deals in the pipeline. Deal Source Africa has hosted 18 deal rooms, engaging 72 impact funds and connecting them with 372 businesses – of which 80 are female-led – from across the continent, including Ghana, Nigeria, South Africa, Mozambique, Tanzania, and Senegal. Deal Rooms have been held virtually and in-person in Ghana, Nigeria, Kenya, and South Africa, and are open to businesses from all across Africa.
Success stories include a deal worth GHS 3.5 million (US$285,494) closed by a female-founded pharmaceutical company from a connection made to an investor in the 2024 SDG Investment Fair Deal Room organised in partnership with the Ministry of Finance in Ghana.
Other success stories include Wami Agro, an agritech company based in Ghana, which secured a strategic investment from Mirepa Investment Advisors through quarterly deal room introductions. This investment will empower Wami Agro to scale its operations, expanding its reach and technological capabilities in its mission to drive positive change within the food and agricultural industry.
Another shining example is Sommalife Limited, a social enterprise based in Wa, Ghana. Thanks to Deal Source Africa, Sommalife secured investment from Wangara Green Ventures. This funding will enable Sommalife to expand its operations, support more rural farmers, and increase its community impact, promoting sustainable development and poverty alleviation in rural Ghana.
In an effort to diversify the investor pool of DSA and enhance its sustainability, the first virtual banking Deal Room session was organised in March 2025. An agribusiness closed a deal worth GHS 310,000 (US$25,286) after participating in the deal room, signalling the possibilities of future investments from the banking sector.
Addressing key challenges in accessing finance
Deal Source Africa is actively implementing its innovative solutions to tackle the most significant hurdles facing African SMEs. The Deal Source Africa Webinar sessions, conducted in partnership with enterprise associations like the Association of Ghana Industries (AGI) and Meltwater Entrepreneurial School of Technology (MEST), have equipped 162 businesses (25% female-owned) with the skills and knowledge needed to engage effectively with private funds. The businesses, spanning sectors from agriculture and financial inclusion to manufacturing, health, and pharmaceuticals, emerge from these sessions with a stronger understanding of investor requirements and how to prepare for the investment process.
As part of the initiative’s impact, Feenix Technology in Ghana, a mobility platform democratising access to vehicle finance in Africa, was successfully linked to an investor after using the Deal Source Africa platform and had secured investments.
Looking ahead, Deal Source Africa plans to expand these solutions, reaching more businesses across a wider geographic area and continually refining its approach based on feedback and results.
Collaboration and partners
This collaborative approach extends beyond just connecting businesses and investors. Deal Source Africa is part of a broader movement to build a robust impact investing ecosystem across Africa. The platform’s early success has been fueled by thought partnership and funding from various partners, FMO Ventures Program and British International Investments Ghana Investment Support Program in addition to RISA. Deal Source has also contributed to the momentum behind initiatives like the Africa Impact Investing Group (AIIG), launched in July 2023, which brings together National Impact Investing Ecosystem Builders from across Africa.
Sustainability, future outlook and expansion
Looking ahead, Deal Source Africa has ambitious plans to scale its platform and expand its reach to Kenya, South Africa and Zambia and become even more financially sustainable.
Deal Source Africa does not just address the financing needs of SMEs; it is also laying the groundwork for a resilient and inclusive economic future. Its efforts align with the broader goals of sustainable development in Africa.
IIGh has set an ambitious target to catalyse $1 billion in impact funds for investment in impact ventures across Ghana and the West African sub-region.
Bringing together stakeholders to achieve Africa’s potential
We invite businesses seeking growth capital, investors looking for promising opportunities, and advisors ready to support the next generation of African entrepreneurs to join this transformative journey. By working together, we can all contribute to bridging the $331 billion funding gap.
Akin to Africa’s wider SME community, the potential of Deal Source Africa is boundless. As home to the world’s youngest population and with the new African Continental Free Trade Area creating the largest free trade area in the world, our continent has the potential to experience tremendous economic growth this century.
Join Deal Source Africa in this movement and be part of Africa’s economic transformation. Together, we can unlock the potential for inclusive growth, improve livelihoods, and address pressing challenges across the continent.
Source: CNBC Africa.