Diaspora Investment in Africa: Kanessa Muluneh on Building Investable Businesses and Unlocking African Opportunities

This interview features Kanessa Muluneh, a serial entrepreneur and impact investor with a strong track record in building and scaling companies in technology, healthcare, fashion, and manufacturing. By age 21, she exited her first venture, a telehealth startup, and has since led six businesses, achieving four successful exits totalling over $9.5 million. Born in Ethiopia and raised in the Netherlands, she offers a unique combination of local insight and global expertise.

Kanessa currently leads Nyle, a pan-African investment firm that connects diaspora capital with scalable African businesses. Her mission is to restore ownership and equity for Africans by building a profit-driven, purpose-led investment ecosystem supported by the diaspora.

A. From Remittances to Ownership: Reframing Diaspora Capital

Question 1. You’ve spoken about moving diaspora capital from remittances toward ownership. What structural gaps currently prevent diaspora investors from participating meaningfully in equity, and how can those gaps realistically be closed?

​Kanessa Muluneh: The process starts with knowledge and access. For diaspora investors, the path to professional ownership is often unclear. Building relationships, gaining local insight, and securing legal and regulatory support often require a physical presence, which is impractical for those living abroad.

Without access to professional pathways, many rely on family and friends instead of professionals or structured vehicles, which often leads to problems. Diaspora investors want ownership but lack access to the right systems and people to achieve it safely.

Bridging this gap requires visible, structured, and trustworthy professional access, with clear rules and transparent processes. Trust built through structure makes ownership attainable; otherwise, remittances will remain the default.

​Question 2. In your experience, what misconceptions do diaspora investors often have about risk in African markets, and which risks are actually the most underestimated?

​Kanessa Muluneh: Trust is the main concern and is complex. Diaspora investors often adopt negative narratives about Africa from Western perspectives and family stories, shaping their risk perceptions before any real engagement.

Real risks are present, including weak structures, inconsistent reliability, and political instability in some regions, all of which contribute to negative perceptions. These concerns are valid.

​However, the most underestimated risk is not fraud, but time. Western investors expect fast systems and constant communication, while many African markets operate at a slower pace. This is not a problem or sign of fraud, but simply a different tempo.

Slow timelines and limited communication often cause frustration. Investors may withdraw early, not because of failure but because of misaligned expectations. Time, pace, and communication are often overlooked risks.

Question 3. What does “responsible ownership” look like in practice when capital is coming from outside the continent, but operations are deeply local?

Kanessa Muluneh: Responsible ownership starts with formal structure and documentation. Ownership should be established through official channels, with proper legal setup, clear shareholder rights, defined risks, and a thorough understanding of the law.

If you are unaware of your rights, obligations, or the legal framework, ownership is not secure. Without the ability to navigate, protect, or enforce your interests, assets can be lost quickly.

African markets are unforgiving of non-compliance. Lack of legal knowledge exposes investors to risk. Responsible ownership requires respecting local regulations, establishing proper structures from the start, and avoiding informal arrangements. Structure provides protection; without it, ownership is only nominal.

B. Building Investable Businesses: Operator Fundamentals That Matter

Question 1: Having built and exited multiple companies across sectors, what are the most common reasons African businesses fail to become investable even when demand is strong?

Kanessa Muluneh: The main challenge is a lack of structure. Often, proper records are missing, facts are hard to verify, and due diligence is complicated. This shows the business lacks a strong foundation, even when demand exists.

​Investors do not expect Western-level perfection, but they require clear evidence that a company is real, operational, and capable of growth. Confidence is built on clarity.

​We also assess team composition. While family involvement can help at the start, scaling requires qualified professionals, expertise, governance, and accountability.

​Ultimately, investability depends on fundamentals: structure, transparency, capable leadership, and a realistic path to returns, rather than the uniqueness of the idea.

To read the whole interview with Kanessa Muluneh, click the link

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