October 3, 2024

Ibrahim Sagna (Silverbacks Holdings): “Africa is increasingly seen as an essential market for international brands”

At the helm of Silverbacks Holdings, Ibrahim Sagna is navigating the African market with a strategy focused on tech, entertainment, sports, and media. This approach is rooted in a deep belief that Africa’s consumer market is very promising in terms of creating future job opportunities by spurring innovation and attracting investments—including the diaspora. A former corporate executive of Afreximbank, AFC, IMF and Emerging Capital Partners executive, who has interacted with prominent leaders like Alassane Ouattara, Nelson Mandela, and Cyril Ramaphosa, Sagna shared his investment thesis with us.

Interview by Goudet Abalé

Forbes Afrique: With its 1.3 billion potential consumers and gradual integration through the African Continental Free Trade Area (AfCFTA), the African market offers exceptional opportunities. You have chosen to capitalize on this potential by launching Silverbacks Holdings, a private investment fund firm. Could you shed light on the transformations you've observed on the continent and the factors driving this dynamic?

Ibrahim Sagna: The consumer market (referring to the full range of goods and services purchased by individuals to meet their personal needs and desires, Editor's Note) is booming in Africa, driven by highly favorable conditions. The continent has a rapidly growing population—soon, one in four people worldwide will be African. This demographic advantage, combined with the rising prominence of African culture on the global stage, is attracting massive foreign direct investment (FDI).

Historically, three major sectors have attracted the most significant investment shares—natural resources, infrastructure, and consumer markets—with the latter being the largest job provider by far. This characteristic makes it a preferred choice for investments aimed at sustainable impact and long-term resilience. This is the objective we pursue with Silverbacks.

Forbes Afrique: You mentioned African culture. How has the acceleration of its "export" over recent years influenced the sector, in your view?

Ibrahim Sagna: The export of African culture has had a profound impact on the continent's consumer sector. Take, for instance, Nigerian Afrobeats and South African Amapiano, which have taken the charts by storm and are now listened to worldwide. Their success has amplified the visibility of African culture on a global scale, leading to increased investments in the cultural consumption sub-sector.

This evolution has been bolstered by global cinematic successes that are redefining and elevating African identity on the international stage. For example, the commercial success of Black Panther demonstrated that films with predominantly Black casts could dominate the global market. Similarly, The Woman King showed that our history could captivate an international audience. Thus, Africa's consumer sector is set to grow as African culture continues to capture the attention of global audiences.

Forbes Afrique: The same goes for sports...

Ibrahim Sagna: Absolutely. We are witnessing several significant initiatives that illustrate the continent's appeal as a strategic market. For example, the NBA, backed by influential figures like Barack Obama, has launched the Basketball Africa League (BAL), which features the top teams from 12 African countries. Similarly, the Professional Fighters League (PFL), an expanding MMA league, has announced the launch of PFL Africa, slated for 2025, headed by Francis Ngannou. Even the NFL has started establishing a presence with its NFL Africa program!

Forbes Afrique: How do you plan to capitalize on these trends?

Ibrahim Sagna: We have structured our approach around several key pillars. First, we leverage technology as a growth driver. Just as the GSM revolutionized the continent in the 2000s, technology continues to transform entire sectors today, particularly through the rise of the digital economy and FinTech. In this regard, Silverbacks Holdings invests in companies that benefit from these transformations and are well-positioned to amplify them for the broader consumer base. Next, we target African companies with the potential to scale globally after solidifying their position in the local market. Finally, we recognize the growing global appeal of African entertainment—whether music, cinema, or sports—as a powerful driver of investment. This approach allows us to capitalize on current trends while positioning our investments for long-term impact and growth.

Forbes Afrique: What results have you seen?

Our strategy is built on strategic partnerships with venture capital funds, which gives us access to a diversified portfolio of over 244 companies. However, we take a selective approach by focusing 75% of our investments on a dozen companies we consider the most promising. This method enables us to optimize returns while remaining responsive to market opportunities. In terms of numbers, we began investing about four and a half years ago with an initial total capital of around $5 million and investments ranging from $25,000 to $2 million. These investments have often been highly profitable, generating returns of three to 73 times the initial capital. Today, our portfolio includes a basketball franchise, media platforms, a mobility FinTech backed by Uber called Moove, andnd two unicorns—Flutterwave and Wave—with a combined valuation of over $10 billion and an average valuation of $56 million.

Forbes Afrique: You mentioned a basketball franchise. What is your approach in
sports?

Ibrahim Sagna: We target sports teams that already benefit from engaged communities and stable revenue streams. These teams, comparable to media companies due to their ability to generate recurring revenue through long-term (broadcasting) contracts, offer exceptional financial security. We enhance their potential by forming partnerships with players in media, entertainment, and technology. For example, with the Cape Town Tigers, we maximize fan loyalty to open new revenue streams, thus transforming sports management into a sustainable innovation platform. This approach allows us to leverage the unique strengths of the sports sector and create long-term value.

That said, our exposure does''t stop there, as we recently invested in NERGii, a South African start-ups offering shoe insoles that enhance performance by naturally activating mitochondria. This product, which operates like a biological battery, perfectly aligns with our existing portfolio, sitting at the intersection of sports and technology.

Forbes Afrique: You are also active in the media sphere. How does this aspect fit into your strategy?

Ibrahim Sagna: We view media as an essential lever for enhancing the visibility and impact of the companies we support. We By investing in media platforms such as Techcabal, IN THE VALLEY, a podcast show where we promote the stories of our founders and priority sectors partners to an audience of over 50,000 subscribers and over 8 million views and AMAKA Studio, a platform with over 50,000 subscribers which enables pan African creators to reach the global audience. We are also or collaborating with OMNI AUDIO AFRICA, the first pan African data free radio collaborating with Forbes streaming on over 35 million MTN mobile phones, and with FORBES in its Lusophone edition. The combination of all these actions and the synergies we create allow us to project our assets onto the international stage.

A concrete example is our investment in Forever 7 Entertainment, a studio founded by Hamisha Daryani Ahuja. Her first film, Namaste Wahala, an intercultural love story, was a resounding success on Netflix, reaching the top 10 in several countries, while her second project, Postcards; became the most-watched series in Nigeria in 2024 and became top 10 in markets like the U.k. and the UAE. But this success also resulted from a media strategy executed by Silverbacks Holdings. Indeed, during the release of Postcards, beyond the promotion carried out by Netflix and given our co-executive producer role, we secured media coverage for Hamisha’s work in various outlets: including AMAKA, Forbes, IN THE VALLEY and many others.

Our global and integrated strategy builds a robust foundation for sustained growth and the international expansion of the companies in our portfolio. We do not limit ourselves to financing; our approach also encompasses governance, media development, and technical expertise when needed.

This comprehensive approach has been the key to Silverbacks Holdings' success so far, and we still have a long journey ahead.

Interview on Forbes Afrique