At ACBN, we are guided by the proverb “I am because we are”—a reminder that prosperity is built through community and collective action. In this spirit, we recently sat down with David Harley, CEO of Third Way Capital, to explore how impact investing in Africa is reshaping opportunities for entrepreneurs, communities, and investors alike.
Third Way Capital is a venture holding company investing in scale-ready SMEs in Sub-Saharan Africa, with a mission to see the region become home to some of the best-run companies in the world. Harley’s perspective provides valuable lessons for entrepreneurs seeking to align profitability with purpose.
1. Impact Means More Than Financial Returns
Impact investing in Africa is not charity—it’s a sustainable model of growth. Harley defines it as any investment made with a clear, focused outcome beyond financial return, ensuring the business itself is viable and stakeholders thrive.
Insight for entrepreneurs: Clearly define your non-financial goals—such as advancing gender equality or green energy adoption—just as you define financial targets. This clarity attracts investors while reinforcing your commitment to holistic success.
2. Measure Impact Like You Measure Profit
For impact to be credible, it must be measured. Harley stresses that entrepreneurs should treat impact goals like financial KPIs, with quarterly reviews, progress tracking, and adjustments along the way.
Business takeaway:
Set best-in-class standards for your goals.
Track your operational changes and spending toward those goals.
Acknowledge that some impact metrics are qualitative, but still essential to measure.
3. Patient Capital Builds Lasting Growth
Traditional private equity models often don’t work in developing markets because they demand rapid returns. In Sub-Saharan Africa, businesses often need patient capital—funding that gives them time to build infrastructure and long-term solutions.
As Harley puts it: “You’re building the tracks as well as the train.”
Insight for entrepreneurs: If your business is pioneering new systems in underserved markets, communicate your need for patient growth to investors. Seek funders who understand this long-term vision rather than those pushing for quick exits.
4. Inclusion and Challenging Legacy Biases
Despite women representing up to 80% of professionals in the impact space, only about 30% hold leadership positions. Racial inequities also persist—African-led funds are often unfairly perceived as riskier than Western-led ones, despite superior local knowledge.
Business takeaway:
Tap into Development Finance Institutions (DFIs), which are opening up to diverse leaders.
Leverage diaspora networks for funding, expertise, and global connections.
Recognize that true risk lies in ignoring local expertise, not in embracing it.
A Call to Entrepreneurs: Align Profit with Purpose
David Harley’s insights remind us that impact investing in Africa is about more than capital—it’s about building ecosystems of equity and growth. For entrepreneurs, this means staying clear on your values, seeking aligned investors, and being bold enough to lead with purpose even when the old models resist change.
🎥 Watch the full interview with David Harley here: YouTube Interview
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