African entrepreneurs urged to build sustainable businesses as funding tightens

African entrepreneurs competing in the Africa’s Business Heroes (ABH) semi-finals in Nairobi have been challenged to construct commercially viable business models as donor funding across the continent shrinks.

The call came as twenty selected semi-finalists gathered in the Kenyan capital to pitch their business ventures to investors and corporate executives. Selected from a pool of over 24,000 applications across all 54 African countries, the finalists represent 12 nations and 10 distinct sectors, having generated a combined $85 million in revenue during 2025.

Organisers noted that the shifting economic landscape requires enterprises to move beyond social impact and focus firmly on underlying business fundamentals. Industry leaders addressing the forum pointed out that while problem-solving remains vital, enterprises must demonstrate clear routes to profitability, market scale, and long-term financial self-reliance.

"It forces the question that we no longer need just businesses to solve problems, but we need ones that are commercially viable, sound fundamentals, ones that can demonstrate that social impact and value around environmental protection and profits to an extent can coexist together," said Kome Oruade-Etim, Global Programme Manager for Acumen Angels and a competition judge.

She added that innovation must align with local realities, stressing that entrepreneurs should focus on bringing technology to where communities are rather than expecting communities to adapt to complex technology.

Participants were also advised to embrace emergent technologies to remain viable. Previous competition winners highlighted artificial intelligence as an essential operational tool, warning that businesses failing to adopt modern systems risk losing their market competitiveness.

Access to capital remains a significant structural hurdle for emerging enterprises. Finalists operating in financial access sectors noted that expanding credit access for small and medium-sized enterprises is vital, as smaller firms understand local operational realities but frequently lack structural support.

Four Kenyan enterprise founders are among the top twenty contenders vying for a spot in the final stage. The Nairobi event marks the competition's return to the capital city, which hosted the inaugural semi-finals in 2019.

The top ten entrepreneurs selected from the Nairobi pitches will advance to the grand finale scheduled for December in Kigali, Rwanda. They will compete for a share of $1.5 million in grant funding alongside direct mentorship, global visibility, and access to investor networks.