Adewale Asimolowo, a fellow of the International Investment Fund (IIF) and an experienced finance professional, has evaluated early-stage ventures across Africa. In this conversation with Racheal Olatayo, he shares critical insights on why traditional global investment models fall short in emerging markets and how investors can adapt to unlock both financial and social returns.
Tell us about your role at the International Investment Fund and the kind of work you’ve done there.
At the IIF, I was part of a select team tasked with conducting deep due diligence on early-stage startups across Africa and other emerging markets. I evaluated ventures in sectors ranging from edtech to green energy, including companies like Rocket Jobs, A digital employment platform using AI to connect job seekers with opportunities in Kenya, and PeerCarbon, which is innovating around accessible carbon markets. My focus was on financial viability, scalability, and impact helping determine which ventures merited funding and post-investment support.
We weren’t just checking boxes, we were designing frameworks to help these businesses become attractive to global investors, particularly those from the U.S. This was about preparing the next generation of investable businesses in places often overlooked.
What would you say global investors are getting wrong about risk in emerging markets?
Adewale: A lot, frankly. Risk assessments by investors are often built around traditional financial statements, established credit scores, or regulatory stability. But these metrics don’t capture the true resilience or innovation of many SMEs in places like Nigeria, Kenya, or Ghana.
For example, a startup with high traction in a local informal economy might not look attractive on a spreadsheet, but its real-world impact, community integration, and growth potential could far surpass those of more “established” companies. We need to move from a risk-averse mindset to a risk-informed one, backed by localized data, blended finance structures, and better partnerships.
Can you share a real-world example from your IIF experience so far that illustrates this?
Adewale: One example is our evaluation of Swyft, a logistics startup solving last-mile delivery problems in secondary African cities. On paper, their cost structure looked high. But when we applied a more contextual lens factoring in informal network strength, tech adaptability, and alternative cost savings the business made strategic sense. We recommended investing, and Swyft became one of the Fund’s portfolio companies.
That decision wouldn’t have happened under a conventional Western lens. But using our adapted due diligence process, combining social impact with market traction, we unlocked a viable opportunity for return and transformation. We are eager to see the impact of the investment grow.
So what’s the opportunity for finance institutions?
Adewale: It’s enormous. Especially ESG and impact-driven capital has a chance to shape the next wave of global growth. But investors need new tools: localized data platforms, regional partnerships, and flexible funding mechanisms like revenue-based financing or first-loss capital.
What I see is that investor funds can play a catalytic role—not just in returns, but in building ecosystems that support youth employment, financial inclusion, and climate adaptation. And that’s not charity, I see it as strategic global investment.
If you could give one piece of advice to global investors interested in emerging markets, what would it be?
Adewale: Get closer to the ground. Work with regional VCs, DFIs, and community-focused accelerators. You can’t assess a Lagos-based startup from a spreadsheet in New York. And you can’t scale global impact with local blind spots.
My work at the IIF shows that if we redefine how we see risk, we unlock some of the most exciting, untapped investment opportunities of this decade.
