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Tech

Enza Capital wants Africa to build its AI with its new fund

Why Enza Capital is betting on a fund just for AI

After investing in tech startups across Africa for the past seven years, Enza Capital has launched a dedicated fund just for artificial intelligence (AI) startups and AI-enabled startups in Africa, on the view that African venture capital is maturing and that specialist funds find and support the best companies more effectively.

“AI is the most consequential technology shift in a generation, and it needs to be harnessed to create value for a broad set of people,” Mike Mompi, Enza’s managing partner, said on a call with TechCabal. “That is why investing in AI in Africa now is an incredible opportunity and even a responsibility.”

The firm’s name comes from a Zulu word meaning ‘to build’, ‘to make’ and ‘to create’; it has raised $58 million across its first two funds and says it has made 75 investments across 47 companies in nine African countries. 

Mike Mompi started Enza in 2019 with two co-founders. Sir John Lazar ran Metaswitch, a communications software company backed by Sequoia Capital and Francisco Partners, which Microsoft bought in 2020. David Cohen worked at Goldman Sachs in London before spending about two decades as a partner at Farallon Capital, the hedge fund.

By Enza’s count, AI took about 60% of global venture investment in 2025 and just over 5% in Africa. While Enza does not expect African startups to compete with frontier models because the capital required is too large, it is betting on companies that adapt AI to African conditions. 

These African adaptations could include voice tools that understand Pidgin and code-switching for customers who cannot read, smaller models trained on local data, and computing that works where connectivity is patchy. The firm calls this the constraint advantage, the idea that products built for Africa’s limits can also work far beyond it.

That thesis shapes what Enza looks for. As building a prototype gets cheaper, the firm says, founders need deep knowledge of their market and a moat that cannot erode: data no one else has, existing routes to customers, or a product built into the daily work of the people who use it. 

Enza also screens hard on cost. AI startups pay for every query their product runs, so a business that assumes cheap inference can be wiped out if that cost doubles. The firm backs companies with high margins or a clear path to them and expects open models and cheaper local computing to bring costs down.

In this conversation, Mompi explains why Enza is raising a fund dedicated to AI, why he believes African AI companies will win through local data, distribution and fit into customers’ daily work, what he looks for in founders, how he thinks about the cost of running AI models, and how Enza plans to return money to its investors.

This interview has been edited for length and clarity.

Why a dedicated AI fund for Enza?

African venture capital is following the pattern of other emerging markets. Funds start as generalists and specialise as the market matures. A specialised fund is better at finding the best opportunities and helping companies reach good outcomes, because focus brings networks, relationships and insight into what is happening globally and locally.

We have invested in African technology for nearly a decade, and with our team, our knowledge and our mix of local and global networks, we believe we are one of the firms best placed to run an AI fund for Africa.

Sir John Lazar spent three decades as an engineer, raised money from Sequoia Capital and Francisco Partners, and sold that business to Microsoft. He is president of the Royal Academy of Engineering, which runs the Africa Prize for Engineering Innovation; that is where we spent time together before launching Enza. He also chairs the Raspberry Pi Foundation, which owns the trading business Raspberry Pi, and guided that business through its listing on the London Stock Exchange.

Sir John runs our office of the CTO, alongside two CTOs in residence, which is rare for a venture team on the continent. One was head of engineering at Yassir, the Algerian super app. The other led engineering at Founders Factory Africa. That depth lets us support our companies on technology. We also run a community where CTOs across our portfolio learn from each other and workshops with outside experts on putting AI to work for companies that are AI-first and those that are not.

We brought AI Tinkerers to Africa as an operating partner and sponsor. It is a network of about 1,300 builders working on AI products in Nairobi, Lagos, Cairo and Johannesburg, and we have run sessions with partners including OpenAI and Microsoft. The aim is to give engineers and early founders a place to show their work and meet people they might not otherwise meet.

Since 2025, we have published our thesis on what AI means for Africa through our Substack, African Vector. It is where we share our thinking and invite challenge.

AI is the most consequential technology shift in a generation, and its value needs to reach a broad set of people. Private AI investment has grown fivefold over the last five years, but Africa’s share of that growth has been marginal. AI took around 60% of global venture investment in 2025 and just over 5% in Africa. That gap is an opening, and we believe AI will be one of the biggest long-term sources of value on the continent.

Beyond the size of the opportunity and the funding gap, what draws Enza to AI investing?

AI is collapsing the cost of building things, and it lets African founders sell globally from day one. More specifically, three things.

The first is local context. There is an opportunity in AI systems trained or adapted for African languages, cultures and operating conditions. Building the same thing as Anthropic or OpenAI would take more capital than Africa can raise. The question is which models suit which places and uses, from small language models with millions or billions of parameters to large ones with hundreds of billions or trillions.

Global models often miss local context. We saw it early on with facial recognition built in the US that could not recognise non-white faces, and we see it now with voice AI that struggles with Pidgin and with speakers switching between languages mid-sentence. A bank customer or mobile subscriber who cannot read and can only use voice is shut out. Add background noise and different dialects, and the problem grows. Africans are now building models that handle this, trained on African data and deployed in African companies. We have invested in one, Aethex AI, and others include Lelapa AI, Intron and ToumAI.

The second is proprietary data. Companies need defensibility, so they are not building a feature that sits on a frontier model’s roadmap. They can build unique datasets and feedback loops that make their AI more accurate over time. Hakimu AI, one of our companies, has access to hundreds of thousands of previously unpublished Supreme Court case files, which it uses to train a small language model that helps East African courts deliver faster, more consistent justice.

The third is infrastructure and compute. How do you make AI work where connectivity is limited or patchy? That means running models on devices at the edge, mixing types of hardware, and building systems that cannot assume abundance. Solutions built for those constraints can also work globally.

Five years ago, we invested in Guidewheel, founded out of Stanford, whose first deployments were in Kenyan factories. It collects machine data and processes it in the cloud to help factories run longer and cut energy costs. Its customers report an average of 41% more output from existing equipment, and we have seen energy costs fall by about 15% a month. It has since scaled across North America, raising from Greycroft and from Decarbonisation Partners, a joint venture between BlackRock and Temasek.

Many investors I speak to see AI as a tool for solving local problems faster, with the edge coming from local context. Do you agree?

Yes. We see AI as a means to an end. We are building an AI fund because we believe AI will let a generation of African founders, businesses and possibly governments solve problems that could not be solved before.

AI changes the economics. Smaller teams can build more ambitious companies with less capital, which matters even more in thin capital markets like ours.

We see two types of companies. AI-native companies have AI at their core, and their revenue comes from it. AI-enabled companies, which is almost every technology company raising money today, spend part of their budget on AI tools to work more efficiently.

You say Enza has done the most AI investments in Africa recently. How many deals, over what period?

I believe we are the most active venture fund making AI-native investments in Africa, but I would be happy to learn that others have done more so we can co-invest. The opportunity is far larger than any one firm. We have made 11 AI investments and are working on our 12th.

Quro Medical, a South African health tech company, is one we have exited.

Hakimu AI is the legal tech business I mentioned. When people in New York or San Francisco ask how you can build AI in Africa, it is one of the examples they understand.

Lua was the first African AI business to go through Y Combinator in its Fall 2025 batch. We had backed one of its co-founders in an earlier, non-AI business. Lua builds AI agents for businesses, mostly African companies, though it has customers on five continents.

Aethex AI builds local language models, starting in Francophone and Anglophone West Africa, and is already selling them. It also built Kora, one of the leading benchmarks for local language models.

WideBot, started in Egypt, built the first Arabic language model that handles multiple dialects. It now has 14 governments and more than 400 businesses as customers.

At the infrastructure layer, there are Guidewheel and Satlyt, which announced its seed round in October. Orca Fraud and Buguard are AI-first cybersecurity companies.

What does the ideal startup for this fund look like?

I would describe what we look for, since it does not depend on a specific business or sector.

People still matter most. Founders need deep expertise in the market they are building for. Prototypes are getting easier and easier to build, so a founder who does not know the market ends up alongside everyone else who built something similar. We look for founders who are ambitious and realistic, with ambition that comes from deep knowledge of the market.

Then it depends on where a company sits. We think of the stack in three layers: infrastructure, platform and application. Building gets cheaper as you move up toward applications, so there is more competition, and you need a stronger moat. At the application layer, that moat can be proprietary data, distribution through existing customer relationships, or workflow integration, where the product becomes part of the daily work of the people who buy it.

Moving down the stack, capital costs rise, and competition falls. Look at Cassava and the GPUs it is bringing into Africa. We are building something for the ecosystem with Cassava that we will announce shortly. Few companies can operate at the scale Strive Masiyiwa can, with his expertise and access to global capital. Infrastructure needs economies of scale. Edge compute is one opportunity, and that is where Satlyt sits. As an early-stage software startup, it plugs into existing scale, optimising communication between satellites and GPU capacity, without building that scale itself.

The platform layer, between the two, is the trickiest, because competition comes from every side. There you need a real technology moat that a large language model company will not roll over.

The last thing is the business model. Many AI companies are moving from charging for usage to charging for results. If a bank receives 10,000 calls a day and can handle 1,000, it misses 9,000. A voice agent that handles all of them and resolves customers’ problems could be worth hundreds of thousands, or millions, of dollars to that bank and could be priced as a share of the profit it creates.

How do you think about exits for this fund, and can you tell me about the exit you mentioned?

For an investment ecosystem to work, investors need their capital back plus a return for the risk. Exits at scale have been missing in Africa, but we have enough signs to believe they are coming.

We are seeing more mergers between companies. Industry players are building teams to acquire technology companies. Global companies are looking for growth outside their home markets. Several IPOs are in progress, which is raising awareness and participation.

We are also working on it ourselves. With co-investors, we helped launch Clearflow Markets to make it easier to buy and sell shares in private companies. We cannot wait for liquidity to appear. We need to build routes to it for our companies, our LPs and ourselves.

Quro Medical built wearable technology, using machine learning, so that a patient who would have spent ten days in hospital could spend two there and eight at home. It worked so well that hospitals began asking why patients should only wear it at home. We co-led a round early in Enza’s life, and in 2025 we sold our full stake, alongside other investors, to the largest publicly listed hospital group in South Africa.

Application-layer AI startups pay for model and inference costs, which squeezes margins. What gross margins does Enza want to see early on?

If you build a business assuming a certain cost for your core product and that cost doubles, you can go out of business if you cannot adapt.

One reason an Africa-specific AI fund makes sense is that our companies do not have to rely on global models to solve local problems. Open-source and open-weight models, and initiatives we are part of, are cutting the cost of training, running models and accessing compute. Some work needs GPUs, and some needs CPUs, so knowing where a model should run matters. There are also initiatives such as the Enzi Prize, a $10 million prize for highly capable, open and affordable AI in Africa.

Margins matter. Many businesses got into trouble between 2020 and 2022 by chasing headline numbers such as total transaction value and ignoring margins. Net profit margin and free cash flow matter even more than gross margin. We look for businesses with high margins or a clear path to them. Companies are also innovating with smaller models, local compute and on-device AI, so we expect costs to fall.

There is also huge and probably unreasonable overinvestment in AI infrastructure globally, which risks overcapacity. Not all AI is fundable, and capital put to work without a deep understanding of the technology risks being lost. That is why it matters to understand where value is being built and where it will stay, for each business, each country and the continent.

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DPI Venture Capital, the early-stage arm of Development Partners International—a private equity firm managing more than $3 billion in assets across Africa—has reached a final close of over $112 million for its Nclude Fund. 

Ashley Lewis, managing partner and head of DPI Venture Capital, told TechCabal that virtually all the capital was committed by financial services institutions, with 93% originating from within Africa. By comparison, African investors supplied just 37% of the funding secured by the continent’s startups in the first half of 2026, according to TechCabal Insights. 

At $112 million, Nclude’s final close exceeds the combined total raised by all Africa-focused venture funds in 2025: the African Private Capital Association (AVCA) recorded just six final closes totalling $107 million that year, an 87% drop compared with 2024.

The fund is notable not only for its scale in a depressed market, but because it reverses the conventional architecture of African venture capital, where development finance institutions (DFIs) and Western limited partners typically anchor the ecosystem.

“There is a lot of discussion about how funds can move beyond the DFI-backed model to more commercial funding, and I think Nclude and DPI Venture Capital show that there are working paths to capital from unusual sources,” said Lewis. 

Nclude started in March 2022 as a fintech fund in Egypt, launched after the Central Bank of Egypt approved it. Banque Misr was the anchor investor, with National Bank of Egypt and Banque du Caire as strategic investors, and the Egyptian Banks Company, e-Finance and Mastercard joined later. Global Ventures managed the fund at first, but in 2025, after a restructuring, DPI became its adviser and launched DPI Venture Capital to run it.

When DPI assumed control, Banque Misr stated that the fund held $105 million in assets under management against an initial $150 million target. While the $112 million close settles below that original ambition, Lewis maintained that DPI did not establish a rigid cap. 

With unallocated capital already available upon takeover, the manager spent roughly 12 months curating a select group of commercial institutional investors whose strategic footprints aligned with the fund’s financial services mandate. 

The fund targets core fintechs alongside embedded finance providers—such as real estate platforms distributing mortgage products. Under DPI’s stewardship, Nclude expanded its mandate to span seed through Series C rounds, carved out a minimum 10% allocation for seed-stage bets, and began deploying outside Egypt, with up to 30% of capital permitted across broader regional markets. 

Writing equity cheques between $500,000 and $10 million, the fund has backed 15 companies over the past 18 months; Lewis expects the portfolio to mature at between 22 and 24 investments. 

Its portfolio includes Nawy, the Egyptian proptech platform that secured a $52 million Series A; Paymob, the digital payments infrastructure provider that closed a $35 million pre-Series C round led by Mubadala and the EBRD; FlapKap, a UAE-based revenue-based financing platform for SMEs that raised $34 million; Money Fellows, a digitised money circles (ROSCAs) platform that raised $13 million; Kera, a healthcare AI company operating across Senegal and Côte d’Ivoire; and Accord Partners, an accounting and corporate audit AI aggregator focused on Saudi Arabia. 

Below, Ashley Lewis discusses how DPI structured the raise, where the capital is being deployed, and the secondary and trade exit pathways the firm is prioritising in a constrained market. 

This interview has been edited lightly for clarity and length.

What was the fundraising process like?

We became advisers to the Nclude Fund in 2025, and getting there took some time. During that period we started to rethink what success would look like. The fund was championed by the Central Bank of Egypt, and all its LPs were financial services players, mostly banks. We wanted to continue in that vein. There was a special connection between the regulatory view, the financial services view, and what technology can do for the ecosystem.

Success for us meant going to a small number of LPs and keeping the base the same. The ones we brought on are, for the most part, African and regional financial services players.

That made this fundraise different from what most GPs go through, where you are looking at DFIs and global LPs. It still takes time to get LPs over the line, and we worked closely with them over about 12 months.

What target did you set?

We approached the target differently. We focused on aligned partnerships and did not set an explicit fund size target. When we became adviser, the fund still had dry powder to deploy, so we wanted investors aligned with the broader vision who were also financial services players. That is different from how most funds set a target and then go to market to maximise it.

How have you deployed capital since DPI took over?

Our first goal was to look after the existing portfolio. There were eight companies in it. Several needed follow-on investment and some were raising competitive rounds, so we put capital into those first.

Then we saw a strong opportunity in Egypt and closed several rounds there. We led a round for Money Fellows and invested in the proptech company Nawy, among others.

The other ambition was to use the international mandate, which allows 30% of the fund to go anywhere in Africa or the Middle East. That led to two deals: Kera, a health AI business in Senegal and Côte d’Ivoire, and Accord Partners, an Egyptian founder’s AI roll-up that launched first in Saudi Arabia.

What has changed since DPI took over?

Four things. We grew the team. We expanded the mandate, which ran from seed to Series B, to include Series C, because we were seeing well-priced deals at that stage. We restructured parts of the fund so at least 10% now goes to seed.

And we launched a VC academy this year, which was already in the mandate but had never been used, to train the next generation of venture capital leaders in how we invest.

Does the fund have an AI mandate?

We do not have an AI-specific mandate. But AI is clearly disrupting many technology businesses, and new founders are launching with it at the core. Our mandate remains tech, embedded finance and financial inclusion, and AI is changing how products in this space are delivered, which changes how we invest.

Our two latest companies are AI-native. Accord Partners is built around using AI to change auditing and accounting, doing roll-ups more efficiently to produce better outcomes for mid-sized firms. Kera has leadership with AI-native backgrounds and is bringing better ways of managing patients and insurance products into the health ecosystem. We still consider both fintech businesses.

AI is no longer its own vertical. It cuts across everything, and we see it in every business we screen.

What does a company outside fintech need to stand out to you?

On the surface, one might look like a proptech business, a used-car marketplace or a health company. Built into its model is a financial product that improves affordability and access for consumers and small businesses, or changes how customers engage with the business.

These companies have an unfair advantage from their data and their closeness to customers, which lets them size, price and deliver that product well. We need to see it built in before we can invest.

Nawy is the example. On the surface it brokers and sells homes, and it has also built one of the leading mortgage products in the market. That is not its main focus, and it helps make homes more affordable for buyers.

Your cheques range from $500,000 to $10 million. How do you split between stages?

This is a multi-stage fund, which gives us flexibility to adapt to the market.

We expect 10% to 20% of the portfolio to be seed stage, and right now we are closer to 20%. Later-stage cheques run upwards of $5 million, and those will be the anchor businesses.

The split is about diversification and maximising returns. We have made big bets at Series B and pre-Series C, and I am excited to explore the earlier stages too.

How much dry powder is left?

We do not want to disclose the amount. We have dry powder, we are actively deploying, and we have made a lot of investments over the last 18 months, so the portfolio is becoming quite robust.

How many more companies will you add, and in which sectors?

We have invested in 15 and expect to be closer to 22 to 24 by the end of the fund’s life. The mandate remains fintech and fintech-enabled. At the outer edges of African technology, such as deep tech or space tech, it will be very hard for us to invest unless there is a financial product built in.

Some areas keep coming up. The future of work, and how workers can be better supported in their financial lives. Health, where we have doubled down and have a handful of portfolio companies. SME lending, where I still think there is disruption to come. And what look like traditional businesses — selling cars, furniture, other goods — where the question is how to better finance the customers underneath.

What support do you give startups beyond capital?

At DPI we have a fully embedded value creation team that works with companies day to day, and as the newest part of DPI we have been able to draw on it.

One big piece of work this year is a playbook for companies outside Egypt that want to expand into the country. We use our regulatory connections, our banking connections and our understanding of the market to help them through that.

We have also helped companies through very difficult times, including raising equity and debt through our networks. We are active on governance, with board and observer seats. Different companies need different levels of support, and with some we meet every week.

What exit routes do you see?

One of the biggest benefits of sitting inside DPI is that the firm has exited many companies through different routes. Optasia listed on the Johannesburg Stock Exchange in November 2025.

Last week MNT-Halan, another of our fintech unicorns, listed on the Egyptian Exchange. We have seen IPOs in Morocco too, so we have validated the public listing route.

We have also exited to buyers in the Middle East. That matters, because several of our companies are active in Saudi Arabia, the UAE and Oman and are looking at potential acquisitions from Saudi buyers, sovereign or otherwise. We have validated sales to strategic buyers, and management buybacks.

The first three are the routes many of our early-stage companies are working towards, and they can learn directly from how our DPI colleagues did it.

What should people take from how this fund was raised?

The uniqueness of the funding sources. Nearly 100% of the funding came from financial services organisations, and 93% of the capital came from Africa. African corporates are really engaged in this space.

There is a lot of discussion about how to scale a fund and move out of the DFI-backed model into more commercial funding.

Nclude is a good case for pathways to capital from unique sources. That 93% matters: sourcing capital directly from Africa to back African founders and solutions.

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