Ciwara Capital, a diaspora-driven investment network, has announced ambitious plans to transform into a full-fledged investment fund targeting €80 million ($83.9 million) by 2026. The fund will focus on supporting small and medium-sized enterprises (SMEs) and startups across Africa, with a particular emphasis on seed and Series A investments ranging from €300,000 to €500,000. This marks a significant evolution for Ciwara as it broadens its geographical and sectoral scope to include Nigeria, South Africa, and other mature English-speaking economies.
Ciwara Capital’s strategy aims to address the risks associated with concentrated investments in volatile markets like Mali. The decision to expand geographically and sectorally stems from lessons learned during the challenging period from 2020 to 2022, when Mali faced political instability and economic uncertainty. During this time, the group of diaspora investors behind Ciwara reevaluated its financial commitment strategy, adopting a pragmatic approach to risk diversification.
The new investment focus includes agrifood, renewable energy, and finance — sectors chosen for their alignment with Africa’s sustainable development goals, including food security, energy access, and financial inclusion. This diversified approach seeks to stabilize the investment portfolio while capitalizing on growth trends across the continent.
Since its incorporation in July 2022 as a Société par Actions Simplifiée (SAS) with an initial capital of €50,000, Ciwara Capital has made significant progress. A second fundraising round in February 2023 raised the company’s share capital to €200,000, enabling its first investments. In December 2022, Ciwara invested in Zira Capital, a Malian fund focused on agriculture. This move fulfilled a commitment under an IFAD-funded project operated by Investisseurs et Partenaires (I&P).
In early 2024, Ciwara Capital made its first direct investment outside Mali, backing LafricaMobile (LAM), a Senegal-based multi-channel digital communications platform. The investment, made in partnership with Teranga Capital, highlighted the company’s willingness to deviate from its initial sector focus when presented with high-potential opportunities. Ciwara plans to follow this with an agrifood investment in Mali and a third direct investment before the end of 2024.
Ciwara Capital originated from a series of workshops aimed at mobilizing diaspora investors to create a dedicated investment vehicle for Mali. The initiative’s founders recognized the need to move beyond serving as a shareholder group in Zira Capital to managing their own investment entity. The name “Ciwara Capital” pays homage to Malian heritage while signaling a forward-looking approach.
To strengthen its financial and operational capacity, Ciwara has opened its capital to a broader section of the African diaspora. This expansion brings additional resources, expertise, and networks, enhancing the company’s ability to attract investors and scale its activities. The ultimate goal is to raise €2 million in the short term to establish credibility and build momentum toward the €80 million target.
Ciwara’s geographic expansion includes Senegal and Côte d’Ivoire, chosen for their relative political and economic stability, as well as their vibrant business environments. The significant presence of the Senegalese diaspora in France and the strong historical ties between Mali and Senegal offer strategic advantages.
Sectoral diversification complements this geographical strategy, allowing Ciwara to navigate sector-specific risks and tap into new growth opportunities. By focusing on high-growth industries, the network aims to deliver competitive returns while supporting inclusive economic development.
Despite its progress, Ciwara Capital faces several challenges in realizing its ambitious goals. Building a track record of successful investments is critical to attracting institutional investors and meeting the €80 million target. Additionally, navigating the complexities of multi-country operations and managing political risks will require careful planning and execution.
The journey of Ciwara Capital reflects the evolving role of Africa’s diaspora in driving investment and economic growth. As the network transitions to a fully operational investment fund, its success could inspire similar initiatives across the continent, leveraging the collective power of diaspora communities to shape Africa’s economic future.