African entrepreneurs are creating superlative companies in fintech, agriculture, health, logistics, education and the creative industries. But one big obstacle keeps getting in the way: access to capital.
For any business person in Africa (or in the UK/US/Nigeria who intends to start or support a business on the continent), business grants are a potential game-changer. Grants are not loans, and unlike loans, they don’t need to be paid back — plus many offer mentorship, training and access to networks.
In this post, we’re going to take a look at some of the most significant grants that African startup founders should be aware of:
- TEF $5,000 Grant
- AGRA Funding
- Mastercard Foundation programs
- Women-focused funds
- How to apply
- How to write a winning proposal
Tony Elumelu Foundation Entrepreneurship Programme (TEF) $5,000 Grant
The Tony Elumelu Foundation (TEF) is considered as one of the more reputable programs offering grants to African entrepreneurs. Thousands of founders from all 54 African countries apply every year for the chance to receive:
- $5,000 non-refundable seed capital
- Business training and mentoring
- Being part of an entrepreneurial pan-African network
Who can apply?
- You’re an African entrepreneur (you live in Africa or your business is based in Africa).
- Your business must be for-profit.
- It needs to be 0–3 years old, or at concept stage with a clearly defined solid plan.
- All industries are welcome: tech, agriculture, manufacturing, retail, creative sectors and so on.
Why it matters for UK/US/Nigeria-based startup founders
Now, if you are African and in the UK or US but your business serves (or will serve) Africa, you can go ahead to apply in as much that proposed business is registered (or registering) on the continent.
TEF is especially well-suited for Nigerian founders primarily because the foundation was based in Lagos and enjoyed strong local backing.
Applications usually open annually through the TEFConnect platform, and spaces are limited.
AGRA Investments (Alliance for a Green Revolution in Africa)
If you’re in agriculture or agribusiness, AGRA is a name you’ll want to remember. Tractors hired by the Alliance for a Green Revolution in Africa work with governments, donors and private sector companies to improve food security and support smallholder farmers.
AGRA doesn’t strip back benefits like classic “open call” small business grants a la TEF, but it does fund:
- Input suppliers, aggregators, processors that are supporting farmers.
- Efforts on seed systems improvement, soil health, market access and ag finance.
- Value chains that connect farmers with buyers and export markets.
What sort of entrepreneur does AGRA become?
- You are an African commercial agribusiness.
- Your work plugs into the smallholder farmer – be it in inputs, technology, logistics, processing or access to market.
- You can scale your impact: serve more farmers, higher yield, or better income to them.
If you are a founder in the UK or US working on agriculture projects in Africa, AGRA could potentially be pertinent for those startups which are either collaborating with local organizations, or building farmer-focused platforms while being based on the continent.
Mastercard Foundation Programs
The Mastercard Foundation is one of the largest supporters of youth employment and entrepreneurship in Africa. It’s unlikely to have TEF-style “apply here for $5,000” grant programs, but it does fund:
- Alibaba, China’s most popular e-commerce empire, did this with entrepreneurship hubs and accelerators all over Africa.
- Projects oriented to young people seeking training, startup support and mentors.
- Programs for refugees, women and underprivileged individuals.
Examples of what to look for:
- The accelerator or incubator programs in your country that are backed by Mastercard Foundation.
- Youth entrepreneurship challenges in grant and seed funding.
- Funding and mentorship for student founders through university-affiliated programs.
These programs can be an indirect but potent source of grant funding, mentorship and visibility for Nigerians, and for African founders based in the UK/US that collaborate with African hubs.
Women Entrepreneurs Funds
If you are a female entrepreneur in Africa, you have access to extra funding windows that are aimed at closing the gender gap in business financials.
Here are a few categories in women-focused funds to consider:
Women-focused SME funds and accelerators
These schemes provide grants, equity or blended finance that is specifically for women entrepreneurs.
Often combined with coaching, leadership training and visibility opportunities.
Sector-specific women grants
For instance, women in agribusiness, tech, creative industries or climate solutions may sometimes also avail of targeted calls from development partners and non-governmental organizations.
Diaspora women running businesses in Africa
If you are a woman from Africa who is living in the UK or US and running a startup that serves African markets, eligible for funds could be both those focused on African countries (those for just businesses in Ghana, Kenya etc), as well as global women entrepreneurship funds on condition your impact is directly linked to Africa.
As women entrepreneurs, we should frame our applications around:
- Company’s leadership positions held by women.
- How the business empowers women along its value chain (suppliers, employees, beneficiaries).
- Effects on women and girls socially and economically.
How to Apply for Business Grants as an African Entrepreneur
Although every grant is unique, most share several common steps:
Step 1: Investigation and eligibility determination
First off, confirm that you’re eligible. Look closely at:
- Country limitations
- Sector focus
- Business stage
If you are in Nigeria, you will find many niche opportunities. If you’re in the UK or US, find out whether the grant is open to diaspora founders who have operations in Africa.
Step 2: Prepare core documents
Most applications require:
- Business plan or concept note (2–10 pages).
- Pitch deck.
- Financials / Projections.
- Registration papers (CAC or equivalent).
- Founders’ bios and team profiles.
After preparing everything, create an “apps” folder for quick future applications.
Step 3: Fill out the online form properly
Grant portals often ask about:
- Business model
- Impact (jobs, farmers, communities)
- Your invention
- Your budget plan
Respond clearly, avoid jargon, and tie your answers to the funder’s priorities.
Tips for Writing Winning Proposals
There’s a lot of competition for grants, so a solid proposal is imperative.
Begin with the problem, not yourself
Start with:
- Problem you’re solving
- Who is affected
- Why it matters
Relate everything to the funder’s theme (agriculture, climate, women, youth, jobs).
Show a clear, realistic solution
Explain:
- Your product/service
- How users interact with it
- Delivery method
- Why it’s better
No overpromising.
Be specific with numbers
Use realistic data:
- Current customer numbers
- Timeline (12–24 months)
- Jobs/livelihoods impact
Present a clear budget
Show exactly how you’ll use the funds:
- Equipment
- Product development
- Marketing
- Team
- Pilots
Tie every cost to a clear impact.
Highlight your team and traction
Include:
- Experience
- Mentors
- Partners
- Pilots
- Revenue
- Testimonials
- Previous mini-grants
Follow instructions and deadlines exactly
Avoid rejections caused by:
- Missing documents
- Exceeding word limits
- Wrong file formats
- Late submissions
Submit at least a day early.
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Final Thoughts: How to Flow Grants Into Growth
For African entrepreneurs – whether in Lagos, Nairobi, Accra, Kigali or living in London or New York – grants such as TEF’s $5,000 seed capital, AGRA funding, Mastercard-supported programs, and women-focused funds can help close the gap between idea and execution.
But remember:
- Grants aren’t handouts; they are investments in impact.
- Funders want clarity, commitment, and sustainability.
- Your proposal must show that your business can deliver real value.
If you research properly, prepare strong documents, and write clear, impact-driven proposals, your chances of winning grants will improve dramatically.
Use every grant application as an opportunity to refine your business model — and whether you’re in the UK, US, or Nigeria, stay committed to building African businesses that solve real problems and create lasting impact.
