How to Build a $1bn African Investment Firm

Building a billion-dollar investment firm in Africa is not about hype, slogans, or chasing headlines. It is about understanding risk, spotting structural shifts early, backing the right operators, and staying patient long enough for value to emerge.

Few people understand that better than Richard Okello, founder of Sango Capital. Since launching the firm in 2011, Sango has grown to manage just under $1 billion, making it one of the notable Africa-focused investment platforms backed by global capital.

His journey offers a practical blueprint for building a major investment firm on the continent.

Start With Global Standards, Then Local Insight

Okello was born in Kenya and raised in Uganda before studying abroad in Wales and the United States. He later began his investment career at Bridgewater Associates, founded by Ray Dalio.

At the time, Bridgewater was far smaller than it later became. Okello spent years there as the firm scaled significantly.

That experience matters. To build a serious African investment firm, founders need more than local knowledge. They need world-class standards in research, governance, discipline, and capital allocation.

Global training plus African market understanding can be a powerful edge.

Raise International Money, Deploy It Smartly

Sango Capital raises funds from North American institutions such as endowments, foundations, pensions, and family offices.

This is one of the clearest lessons in African finance: large pools of capital often sit outside the continent. Winning requires earning trust from global investors and showing them credible routes to returns.

Once capital is raised, Sango deploys it across private equity, venture capital, private debt funds, and direct company investments.

That diversified model reduces concentration risk and creates multiple ways to win.

Invest in Real Consumer Shifts

One of Sango’s standout investments was Sundry Markets, parent company of Marketsquare, a Nigerian supermarket chain.

Nigeria’s retail economy has long been dominated by informal markets, roadside sellers, and open-air trading. But consumer behaviour is changing. More middle-class buyers increasingly value convenience, product range, and structured shopping environments.

Sango identified that shift early.

The result was a partial exit that delivered what Okello described as a very high dollar multiple.

The lesson is simple: billion-dollar firms are built by spotting behavioural change before the crowd does.

Look Beyond Tech Hype

Many investors talk only about startups and apps. Okello’s approach is broader.

Another profitable Sango investment was CMGP, a Moroccan agricultural supplier providing irrigation systems, pipes, seeds, and fertiliser. The company later listed on the Casablanca Stock Exchange.

This highlights a major truth about Africa: some of the best returns may come from solving everyday operational problems in farming, logistics, retail, healthcare, and industrial supply chains.

Not every winner wears a tech label.

Pick Countries With Logic, Not Emotion

A top investment firm must know where to deploy capital.

Okello points to Egypt as a strong opportunity because of its large population and ability to scale businesses domestically. He is cautiously optimistic on Nigeria after reforms such as fuel subsidy removal and currency adjustments.

He also highlights Côte d’Ivoire for strong growth, Kenya and Tanzania for East African potential, and South Africa for its deep private equity market and experienced operators.

The key principle is clear: don’t invest by headlines. Invest by fundamentals.

Population size, reform momentum, private sector depth, infrastructure, and market liquidity all matter.

Buy at the Right Price

Even good countries can become expensive.

Okello notes Morocco remains attractive but valuations are rising, especially ahead of the 2030 World Cup co-hosting boost.

That is a timeless investing lesson. Great assets bought at bad prices can still disappoint.

Discipline on entry price is often what separates average funds from elite ones.

Back Sectors With Long-Term Demand

Okello sees opportunity in organised retail, fast food, healthcare, and technology.

Why? Because Africa is urbanising, incomes are gradually rising, health needs are expanding, and digital systems are replacing inefficient old processes.

These are not temporary trends. They are long-duration shifts.

The smartest investment firms position themselves where demand is likely to compound for years.

Manage Risk Without Fear

Okello compares African investing to riding a speedboat through rough seas while holding a glass of wine without spilling it.

That image captures the continent perfectly. Markets can be volatile. Policy can shift. Currency pressure can hit. Infrastructure can lag.

But risk is not the same as impossibility.

The best firms price risk correctly, structure deals intelligently, diversify exposure, and stay calm through turbulence.