The Third Way
ThirdWay Capital invests to achieve complete returns. We project market-related returns for our investors because we invest in businesses that are positioned to create significant value that can be sustained over time: contributing to, rather than extracting from, people and the planet.
The Third Way
Who We Are
We are a pan-African investment company that invests capital and other growth resources into scale-ready small and medium-sized enterprises (SMEs).
The real barrier to SME growth in sub-Saharan Africa is not political instability or economic uncertainty (these can be found anywhere): it is lack of access to capital, a legacy of being branded a “dark continent”. In fact, it is a continent of opportunity:
Africa has one of the fastest growing consumer markets in the world, clustered around stable centres of growth ($2.5T consumer spending by 2030).
It delivers innovations that bypass legacy systems still used elsewhere, e.g. in fintech, biotech, renewable energy, etc. (mobile money is a $1T industry in Africa).
Economic growth in the continent is backed by our large, young workforce (40% of the world’s youth are here). It is the one regional economy projected to enjoy increased rather than declining growth rates in the coming decade.
ThirdWay Capital partners with SMEs to contribute to this growth opportunity and deliver complete returns (commercial and systemic).
What We Do
We resource strong growth, high impact SME’s in Africa
We find growth-ready SMEs strategically positioned in value chains and sectors crucial to Africa’s future. We back them with $300k-$1M first ticket and we come alongside with seasoned operational expertise. Our proprietary ThirdWay Performance Suite equips our portfolio companies to deliver and track systems change and strong returns.
We generate complete returns for all stakeholders
We take a long-horizon approach so that our investments will deliver sustainable, superior value to all stakeholders in the value chain: customers, employees, investors, and communities at large.
In particular we prioritize employee ownership, an approach proven to reduce inequalities and increase company performance.
We leverage international and regional experience
Our diverse and seasoned team has deep expertise on four continents, including Africa, allowing us to serve as a reliable bridge into and within the continent for investors and a reliable companion for growth-ready SMEs.
We catalyze transformative business practices
We bring a combined 60 years of experience to everything from leadership to strategy to sales. We have scaled tech start ups, restructured corporates, built Fortune 500 strategies, and financed multi-million dollar projects.
We focus on systems change, not sectors
Backing the right business in the right sector or value chain will accelerate and consolidate long-term transformation in Africa in the coming decade. We align our investments with key SME Impact Traits and Systems Impact Themes (see below).
SME Impact Traits
We invest in African SMEs that are unlocking the transformative power of business – generating economic, social, and environmental prosperity. To achieve these systems level changes, every SME first needs to build a company ready to drive change: a company with the following five impact traits. It takes 3-5 years to achieve these company level impacts.
Good Jobs
Permanent employment, with fair wages and good treatment, drives multiple dimensions of family and community well-being.
Economic Inclusion & Agency
The ability of once-marginalized individuals and communities to exercise economic agency enables the building of poverty and breaks the poverty cycle.
Strategic Value Chain Effect
The potential of the business to generate or accelerate a scalable business ecosystem that contributes to a vibrant and sustainable economy.
Consumer & Societal Value
The innovation of products and services that contribute to human flourishing in a healthy environment.
Resource Sustainability
SMEs with business operations characterized by disciplined resource management.
System Impact Themes
Strengthening the African continent’s socio-economic vitality depends on SMEs driving transformation within one or more of these five themes. It takes 10-30 years to achieve major systemic impact.
Exporting Africa
Tap and increase the growing global and pan-African demand for a wide range of African products – value added products, not raw materials.
Industrialization & Import Substitution
Reduce dependency through localized production of previously imported products with local demand, increase supply chain efficiency, and grow local markets.
Climate Resilience
Products and services that contribute to the flourishing of the natural environment (e.g. climate change mitigation, plastics recycling, sustainable agriculture).
Tech-Enabled Inclusion & Acceleration
Enhance the economic participation and power of Africa’s large informal sectors (e.g. financial services, retail, supply chain, agriculture).
Food Security
Interventions that help increase yield, resilience and general productivity of the African agricultural sector, which is fundamental to global food security.