In Africa, giving back isn’t just a kind gesture—it’s a way of life and part of who we are. But how do we ensure our contributions go beyond temporary fixes? How can they create lasting change, outliving us and transforming lives for generations? This is where Venture Philanthropy and Impact Investing come in.

Let’s skip the jargon and break down what they really mean and why they matter.

Venture Philanthropy (VP):

Think of this as strategic giving. It’s more than just writing checks, it’s about actively supporting solutions to ensure they work. Venture philanthropists provide funding, mentorship, resources, and  business expertise to help organizations scale and succeed. The goal is to create measurable, lasting impact rather than simply fulfilling a one-time charitable obligation.

Impact Investing:

This is where finance meets purpose. Impact investing, directs money into businesses or projects that address issues like poverty, education, or renewable energy—while aiming for financial returns. For example, investing in a startup that provides affordable solar energy to rural communities allows you to drive social change while potentially earning a profit.

How’s It Different from Venture Capital?

Venture capital (VC): 

Venture Capital is all about maximizing profits. Investors back fast-growing businesses with the expectation of high financial returns, often within a few years. The focus is on scaling these companies as quickly as possible in order to secure a profitable exit through acquisitions or Initial Public Offerings (IPOs)

Venture philanthropy & Impact Investing:

Venture philanthropy & Impact Investing while still investment driven, they prioritizes purpose over pure profit. Venture philanthropy seeks to create lasting social change by providing funding and resources without expecting financial returns. Impact investing, on the other hand, balances social good with financial gain, offering patient capital to businesses that tackle critical societal issues. The goal is to create a lasting, positive change in society. 

Do They Make Money? What is the ROI?

This is where people ask, “Okay, but do they get their money back?”

Venture Philanthropy: No, financial returns are not the goal. For venture philanthropists, the return is measured by lives improved, communities transformed, and systems strengthened. It’s about creating a better world, not lining their pockets.

Impact Investing: Yes, but it’s “patient capital.” It’s not a quick profit like VC. Think of it as patient investment, you make money over time while solving real-world problems. For example, an investor funding a company that builds affordable housing for low-income families earns steady returns as the business grows, all while addressing a housing crisis.

In short, venture capital chases profit, while venture philanthropy and impact investing chase change—with impact investing offering a middle ground.

Why It’s a Game Changer

Africa is evolving. While traditional donations still matter, people now want their money to create lasting impact. Instead of short-term fixes, the focus is shifting to long-term solutions, and this is what venture philanthropy and impact investing offer.

Take the Tony Elumelu Foundation, for example. By funding and mentoring African entrepreneurs, they’re not just helping businesses grow, they are building economies, creating jobs and uplifting communities.  That’s not just philanthropy—it’s legacy building.

Or look at Babban Gona, a Nigerian social enterprise helping smallholder farmers increase their yields. With impact investment backing, they’ve empowered thousands of farmers to earn more while contributing to food security.

Who Can Benefit?

If you’re wondering, “Can my organization qualify?” here’s a quick guide:

Venture Philanthropy: Perfect for nonprofits or social enterprises working on scalable solutions. For example, an NGO providing free education in underserved areas could attract venture philanthropists who want measurable, long-term impact.

Impact Investing: Focuses on for-profit businesses solving major social or environmental problems. Think of a company providing affordable clean water technology for rural communities while generating revenue.

How to Start Your Journey

Whether you’re an investor, a donor, or just curious about creating change, here’s how to begin:

1. Choose a Cause: What matters to you? Education, healthcare, climate change? Define your mission.

2. Do Your Homework: Research organizations and ventures that align with your goals. Look into groups like the Impact Investors Foundation (IIF) in Nigeria for opportunities.

3. Start Small: You don’t need millions to make a difference. Start with what you have and grow from there.

 In Africa, leaving a legacy isn’t just about wealth—it’s about the impact you leave behind. Venture philanthropy and impact investing offer a way to build something that outlives you.

So, whether you’re a founder growing a social enterprise, a philanthropist looking to give more, or someone looking for smarter ways to do good, this is your chance.

As the saying goes, “What we do for ourselves dies with us. What we do for others remains immortal.”

It’s time to think beyond giving. It’s time to build.

For deeper insights into Venture Philanthropy & Impact Investing, explore this firsthand interview with Ms. Adaeze, the driving force behind Ascend Philanthropy. As the leader of a venture philanthropy company, she shares her personal experiences, perspectives, and the transformative work she’s doing alongside venture philanthropists to create lasting impact: Read the Interview here