Our new book, How we made it in Africa II: Real stories of entrepreneurs turning opportunity into profit, is available here. The book was recently shortlisted for the Business Council for Africa (BCA) African Business Book of the Year Awards 2026.
In a recent interview with How we made it in Africa, Ibrahim Sagna, executive chairman of investment firm Silverbacks Holdings, revealed the five things he looks for when investing in a company.
1. Second-time founders. The firm has had the most success with people who are not running their first company. “We haven’t been lucky ever with first-time founders,” Sagna says.
2. Growth. It looks for companies posting year-on-year growth of at least 60% for three years.
3. Customers turned investors. Silverbacks sees it as an important signal when a company’s clients take a stake in it. Moove is one example. A vehicle supply partner for Uber since its early days, it saw Uber come in as a shareholder in 2024 as part of a $100 million funding round. At OmniRetail, food giant Flour Mills of Nigeria made the same shift from customer to investor.
4. Hard currency earnings. Silverbacks is wary of taking on too much exposure to African currencies. For foreign investors, who typically measure returns in US dollars, a rapid depreciation of the kind seen in Egypt, Nigeria and Ghana can wipe out investment gains. The firm therefore looks for companies that collect at least 30% of their income in hard currency.
5. Global ambitions. Finally, it wants founders who have stated an intention to take their companies worldwide.
Read/watch our full interview with Ibrahim Sagna: Investor shares his playbook after a 29x exit in Africa
Facts Only
* How we made it in Africa II: Real stories of entrepreneurs turning opportunity into profit is a book available for purchase.
* The book was shortlisted for the Business Council for Africa (BCA) African Business Book of the Year Awards 2026.
* Ibrahim Sagna is the executive chairman of investment firm Silverbacks Holdings.
* Silverbacks Holdings prioritizes investing in second-time founders.
* The firm seeks companies with year-on-year growth of at least 60% for three consecutive years.
* Silverbacks Holdings views clients taking an equity stake in a company as a positive signal.
* Uber became a shareholder in Moove in 2024 during a $100 million funding round.
* Flour Mills of Nigeria shifted from customer to investor at OmniRetail.
* The firm requires companies to collect at least 30% of their income in hard currency.
* Silverbacks Holdings targets founders with intentions to expand their companies globally.
Executive Summary
Silverbacks Holdings employs a specific risk-mitigation strategy when investing in African markets, prioritizing experienced leadership and financial stability. Executive Chairman Ibrahim Sagna emphasizes a preference for second-time founders over first-time entrepreneurs, citing a stronger track record of success with the former. The firm's quantitative benchmarks include a minimum 60% year-on-year growth over three years and a requirement that at least 30% of revenue be earned in hard currency to hedge against the volatility of local currencies in nations such as Egypt, Nigeria, and Ghana.
Beyond financial metrics, the firm looks for strategic validation through "customer-turned-investors," a pattern exemplified by Uber's investment in Moove and Flour Mills of Nigeria's investment in OmniRetail. Finally, Silverbacks targets ventures with explicit global ambitions. This approach suggests a cautious investment philosophy that balances the high growth potential of African markets with rigorous safeguards against currency depreciation and founder inexperience.
Full Take
The strongest version of this narrative presents a pragmatic blueprint for navigating high-growth, high-volatility emerging markets. By focusing on "second-time founders" and hard currency hedges, the strategy acknowledges the systemic instabilities of the region while seeking out proven resilience.
However, this framework reveals a specific risk-aversion paradigm: it favors the "safe bet" over the "disruptive bet." By requiring 60% growth over three years and prior founding experience, the criteria effectively exclude early-stage innovation and first-generation entrepreneurs who may lack institutional backing but possess deep local insight. This creates a feedback loop where capital flows toward those who have already succeeded, potentially narrowing the pipeline for new talent.
The insistence on hard currency earnings (30%) reflects a structural tension in African venture capital. While these companies may provide essential local services, their financial viability is measured by their ability to decouple from the local economy to satisfy foreign investors' US dollar returns. This echoes a historical pattern of "extractive" financial logic, where the primary goal is to insulate the investor from the very environment the company serves.
Patterns detected: none
Root Cause: A risk-mitigation paradigm that prioritizes capital preservation and exit liquidity over raw entrepreneurial discovery.
Implications: While this approach secures investor returns, it may marginalize grassroots innovators who cannot meet stringent growth benchmarks or lack access to hard currency markets. The benefit accrues to seasoned operators and foreign LPs, while the cost is a higher barrier to entry for the "unproven" founder.
Bridge Questions: How does the preference for second-time founders impact the diversity of solutions being funded? Would a different hedge—such as local currency insurance—allow for more inclusive investment without sacrificing stability?
Counterstrike Scan: A coordinated campaign would use these "playbooks" to create a false sense of a "universal standard," discouraging first-time founders from seeking capital. The actual content is a specific firm's internal preference and does not attempt to impose a global mandate.