CardinalStone Capital Advisers (CCA) has reached a $76 million first close for CCA Growth Fund II, its second fund targeting small and medium-sized enterprises across West Africa.

The fund will invest primarily in Nigeria, Ghana, Côte d’Ivoire and Senegal, partnering with businesses that have demonstrated the potential to expand their operations. Its strategy centres on addressing the shortage of long-term capital available to companies driving employment and economic diversification across the region.

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Closing West Africa’s Growth Capital Gap

Many West African SMEs struggle to secure the patient capital required to expand, invest in new capabilities and enter additional markets. CCA Growth Fund II aims to close part of that financing gap by supplying both capital and strategic support.

The fund will target entrepreneurs building scalable businesses capable of delivering commercial returns alongside broader economic benefits. CCA views these companies as important contributors to job creation and sustainable development across its four anchor markets.

The fund is managed by CCA partners Femi Ogunjimi, Yomi Jemibewon and Shirley Somuah. The partners said the first close would allow the firm to continue working with entrepreneurs building businesses capable of transforming industries across West Africa.

They added that the fund would pursue investments designed to generate strong financial returns while delivering lasting economic impact.

Local and International Investors Back the Fund

CCA Growth Fund II attracted a mix of returning development finance institutions, Nigerian pension funds and new international investors.

The International Finance Corporation, British International Investment and SCM Capital returned as limited partners after backing CCA’s first fund. New international investor Dutch Good Growth Fund also joined the vehicle.

Domestic institutional participation came from Nigerian pension fund managers including Stanbic IBTC Pension Managers, Access ARM Pensions and FCMB Pensions. CCA’s leadership described the involvement of local pension funds and asset managers as a positive development for the region’s investment ecosystem.

The combination of domestic and global capital gives the fund access to local market knowledge alongside the financial resources and development experience of international institutions.

Development Finance Supports SME Expansion

Farid Fezoua of the IFC said the investment would help close the capital-access gap facing West African SMEs. Connecting promising businesses with funding and operational support is essential to helping them scale and create jobs, he explained.

Sara Taylor of BII said the fund aligns with the institution’s strategy of mobilising private investment for development. She described the first close as an example of how development finance institutions and private investors can work together to direct capital toward underserved markets.

Taylor added that CCA and similar investment partners play an important role in helping local businesses grow while delivering measurable development impact.

With its first $76 million secured, CCA Growth Fund II can begin deploying capital into West African companies while continuing its broader fundraising process.

Nairobi-based agriculture and climate technology company SunCulture has launched RainDrops, a company-wide profit-sharing programme designed to give every full-time employee a financial stake in its future growth.

The programme covers staff across the organisation, regardless of role, extending participation from engineers and other technical employees to operational and support teams. Employees will earn RainDrops over time in recognition of their contributions and may receive a financial reward based on their accumulated balance if SunCulture reaches a liquidity event.

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Linking Employee Contributions to Company Growth

SunCulture said RainDrops aims to align employees’ interests with its broader commercial objectives while reinforcing collaboration and innovation across the company.

Chief Operating Officer Jon Saunders said building a high-growth business requires more than scaling technology or entering new markets. The employees who work each day to convert the company’s vision into operating results remain central to that process, he added.

Unlike incentive arrangements limited to senior executives or selected employees, RainDrops applies to every full-time team member. The programme creates a common mechanism through which staff can benefit financially if the company reaches a qualifying liquidity event.

SunCulture said the structure reflects its focus on equity and shared purpose as it works to expand climate technology for smallholder farmers across Africa.

CEO Samir Ibrahim described RainDrops as more than a financial incentive. He said it represents the company’s gratitude toward its workforce, reflects its internal culture and formalises a commitment to growing together.

Every employee deserves to participate in the success they help create as SunCulture works to support farmers facing climate change, Ibrahim added.

Solar Irrigation and Climate Technology for Farmers

Founded in 2012 and led by Ibrahim, SunCulture designs, manufactures, finances and services internet-connected solar energy systems and irrigation equipment for agricultural use in sub-Saharan Africa.

Its wider offering includes other productive agricultural goods and services. The company says it helps smallholder farmers increase food production through climate technology, carbon financing and a digital marketplace.

SunCulture describes itself as Africa’s largest solar irrigation company and aims to help farmers gain greater control over their operating environment through sustainable tools.

The RainDrops announcement follows the completion of the first payout cycle under SunCulture’s climate insurance programme in Kenya more than three months earlier.

Extending Its Climate Resilience Model

The insurance initiative is delivered with IBISA Networks, which handles product design and trigger monitoring, and APA Insurance, which acts as the underwriter. Africa Re provides reinsurance, while Humanity Insured supports the programme.

That initiative forms part of SunCulture’s effort to help farmers manage climate-related risks alongside its solar irrigation and agricultural technology products.

With RainDrops, the company is extending its shared-benefit approach internally by linking employees’ contributions to its longer-term financial performance. The programme gives its workforce a potential economic interest in the growth they help generate while SunCulture continues expanding its services for African smallholder farmers.

Arc Ride, the innovative Kenyan electric mobility company, has successfully raised $33.3 million in a combination of equity and debt funding.

This financial boost fuels its ambitious expansion across the African continent, specifically into South Africa, Ghana, Tanzania, and Uganda.

This notable funding round was led by investment heavyweights Norrsken22 and Novastar Ventures, marking a significant milestone in Arc Ride’s growth trajectory.

Founded in 2019 by British entrepreneur Joseph Hurst-Croft, Arc Ride operates a unique battery-as-a-service (BaaS) model aimed at revolutionizing two- and three-wheeler transport in Africa.

This model alleviates the need for customers to purchase batteries outright, thereby reducing upfront costs and encouraging the adoption of electric vehicles.

Through its network of smart battery-swap stations, Arc Ride offers an accessible and cost-effective solution to riders. Among its clientele is Yadea, a leading global electric vehicle manufacturer.

Expanding Reach Across Africa

The fresh influx of capital is set to bolster Arc Ride’s operations within Kenya, including major urban centers like Nairobi and the Western region, while facilitating its entry into new markets in South Africa.

Following a successful pilot project in Cape Town, Arc Ride is now actively rolling out vehicles in the Gauteng province, further solidifying its presence in the country.

The startup plans to enhance its battery-swapping network and introduce 5,000 additional motorcycles to its fleet, supporting its mission of making electric mobility more accessible across the continent.

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Joseph Hurst-Croft, Arc Ride’s founder, underscores the company’s vision to transform electric mobility into a default option for riders throughout Africa by ensuring it is more accessible, affordable, and practical compared to traditional petrol vehicles.

“This funding allows us to scale the infrastructure required to support that transition and to do so at pace,” he stated. His sentiments are echoed by Ngetha Waithaka, a partner at Norrsken22, who noted the compelling unit economics and widespread acceptance among riders.

Waithaka added that Arc Ride’s robust technology, extensive data, and network effects position it to potentially become the open standard within the mobility sector in Africa.