Why AHL Venture Partners Shifted from Equity to Debt Financing in Africa

Rosanne Whalley has spent 17 years tracking investment trends across Africa. She witnessed the early optimism that praised startups as future unicorns before they found real customers. She saw foreign capital rush in and quietly withdraw when returns fell short. In 2020, Whalley and her investors at AHL Venture Partners asked a simple question: what actually works? They discovered that private debt offers more predictable returns. Loans cycle back faster than equity and can be reinvested into new businesses. This stability helps scale firms with solid cash flows and disciplined teams. Whalley believes equity often falters in Africa because founders lose focus under pressure. She warns against chasing complex impact frameworks before finding product-market fit. By emphasizing character over charisma, she argues that debt can drive sustainable growth and unlock more lasting impact than equity ever did.

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