As industries across Africa and the Middle East rise to new heights, fuelled by innovation and ambition, the entrepreneurial spirit is thriving. Behind many of these transformative ventures are visionaries working tirelessly to create jobs, improve livelihoods, and propel their businesses forward. However, running a business is not a solo endeavour, especially for small and medium enterprises (SMEs), who often face immense challenges in scaling. The high failure rate in these businesses is often tied to a lack of access to resources, including professional networks, operational support, and strategic guidance. At CFYE, we recognise this gap and have adopted a holistic approach to job creation by integrating co-funding and technical assistance (TA) into our support systems.
In partnership with VC4A, we launched a mentorship pilot designed to match senior business mentors with our implementing partners (IPs) to provide expertise in areas critical to business growth. These areas included finance, product development, operations, and entrepreneurship. VC4A uses a combination of manual review and careful consideration to connect mentors with mentees. They are matched based on their expertise, availability, and geographic location. Following the matches, VC4A also provides ongoing support to facilitate communication and address any issues that may arise during the mentorship relationship.
Our aim? To create a pool of mentors who can offer tailored, high-level guidance that goes beyond traditional TA support. The outcome? Let’s explore the journeys of three successful matches over the course of three transformative months.
Ahmed and Mohamed: A Fundraising Challenge in a War-Torn Market
Ahmed Elmurtada, managing partner at startup accelerator 249Startups in Sudan, faces an especially challenging business landscape due to the ongoing conflict. His primary goal was to build capacity in terms of fundraising for the ‘Rhino Impact Fund’ run by 249Startups and adjust the investment strategy towards Africa – a daunting task in Sudan’s unstable business climate. From a mentor pool of over 700 qualified mentors on the VC4A platform, Ahmed was matched with Mohamed Al Ghannam, a fund-manager at Flat6Labs, who had firsthand experience managing a fund in Egypt and expanding operations into North and Sub-Saharan Africa.
For Ahmed, the need was not traditional mentorship on marketing or operations but on something much rarer – a fund manager who understood the intricacies of fundraising in fragile markets. Mohamed was a perfect match, having navigated similar challenges himself.
Their mentorship focused on refining Ahmed’s investment strategy, building a robust portfolio of companies, and ultimately expanding beyond Sudan towards Africa. Mohamed’s expertise, flexibility, and humbleness were key to the success of the relationship, with the pair meeting every few weeks to discuss goals, share best practices, and shape the strategic direction of the ‘Rhino Impact Fund’. While the three months proved instrumental in helping Ahmed develop a framework for fundraising in a difficult market and positioning his company for future growth, the two still keep in touch, exchanging ideas and business experiences.
Sandra and Yetunde: From Scepticism to Mentorship Success
Sometimes, mentorship begins with reluctance. Yetunde Akande, founder of fashion brand Yetroselane, seeking guidance on brand expansion and HR solutions, was initially hesitant to join the CFYE mentorship pilot. She believed that meaningful mentorship required more time than the three-month window offered. However, she eventually gave it a try, and it turned out to be one of the best decisions for her business.
Yetunde’s first mentor match fell through due to scheduling conflicts, but soon she was paired with Sandra Ojumeaka, a talent acquisition specialist at the Africa Leadership University, and a driven and perfectionist mentor who immediately saw Yetunde’s potential. Sandra’s approach was hands-on and personalised, helping Yetunde tackle internal HR issues that had previously been overlooked by consultants. Sandra was willing to dive into the nitty-gritty details, assisting Yetunde in setting realistic goals, guiding management processes, and even speaking to employees when necessary.
The mentorship relationship thrived because of Sandra’s flexibility and dedication. Despite Yetunde’s busy schedule in the factory, Sandra adapted by making small adjustments like contacting her through phone calls instead of emails and giving specific times to meet. These seemingly minor changes made a world of difference, allowing them to communicate more effectively and build a strong connection.
For Yetunde, the mentorship went beyond technical support. Sandra became a ‘push force’, encouraging Yetunde to make decisions that would accelerate her business growth. Even after the formal mentorship period ended, Sandra continued to offer guidance, a testament to the bond they formed. Yetunde now credits Sandra with being a critical part of her journey and urges other entrepreneurs to seek mentorship, recognising that having an external, experienced voice can make even the toughest challenges seem surmountable.
Josh and Michael: Reimagining Customer Relationships for Scale
Josh Bicknell, co-founder of impact fund Balloon Ventures, found himself at a crossroads. His company, which started in 2019 and partnered with CFYE in 2021, was in need of a more commercial business model to scale. Josh’s portfolio in Kenya and Uganda, much like that of his mentor Michael Mutie, investment manager at Launch Africa, spans a variety of sectors, all aimed at supporting small and growing businesses (SGBs) and fostering sustainable job creation. The pair worked together to explore new funding tools, refine Balloon Venture’s model, and connect Josh with funders in West Africa to eventually expand operations.
One of the most important takeaways from the mentorship was a shift in mindset regarding customer relationships. While Josh had always focused on the initial loan cycle, Michael encouraged him to think about the long-term, multi-loan relationship with clients. This reframing led to the discovery that customer lifetime value (CLV) was a critical metric for long-term profitability. By the end of the mentorship, Josh had a clearer understanding of how to optimise his model for both growth and impact.
What Josh had not anticipated was the level of connection and ongoing support Michael provided. Beyond offering advice, Michael introduced Josh to other founders and investors, fostering relationships that would continue to benefit Balloon Ventures long after the mentorship period had ended.
It was not just a learning curve for Josh as Michael took away the importance of investors actively seeking out opportunities with founders, who are often too busy setting up their business for growth to spend looking for the right investor.
The Path Forward: Cultivating Lasting Entrepreneurial Success
The CFYE mentorship pilot has proven to be a vital catalyst for growth and success among our partners. By bridging the gap between SMEs and seasoned mentors, we are not only enhancing the capabilities of businesses like Ahmed’s, Josh’s, and Yetunde’s but also contributing to a thriving entrepreneurial ecosystem across Africa and beyond. The relationships formed during these mentorships extend beyond the initial three months, creating lasting networks of support and collaboration, proving that true success in business is a collective journey.
Faatimah Clarke
September 3, 2024