Stop Chasing Grants, Start Building Value

Fund Manager Agnes Aistleitner discusses the critical shift African entrepreneurs must make: moving away from a “grant-seeking” mindset toward building sustainable, value-driven businesses.

With a focus on the fintech sector and early-stage investments, Aistleitner shares her perspective on how private capital, rather than traditional ai,d is the true engine for economic growth in Uganda and across the continent.

The Misalignment of Aid and the Private Sector

While aid plays a vital role in sectors like health and education, she argues it is often ill-suited for the private sector. The primary issue is a “misalignment of incentives.” Grants frequently lack accountability and prioritize social impact metrics that may not align with business sustainability.

In contrast, a successful business naturally creates social impact through job creation and service delivery.

Navigating the Venture Capital Landscape

As a fintech investor, she looks for specific traits in founders and their ventures:

• The Sponge” Mentality: an entrepreneur who is willing to learn, listen to feedback, and adapt without being rigidly stuck on a single idea.
• Traction and Validation: entrepreneurs can validate their ideas by bootstrapping, securing initial contracts, or talking directly to potential customers.
• Scalability: To reach the “billion-dollar” valuation status, Ugandan entrepreneurs must look beyond local borders and build businesses capable of operating in multiple markets.

Advice for the Next Generation of Tech Leaders

If a solo venture isn’t gaining traction, Aistleitner encourages young professionals to work for an established company in a similar space to learn the ropes before returning to their own ideas.

Watch the full interview to hear more about Agnes’s experience with Ugandan startups like Credify and her strategy for catalyzing international capital into the region.