Africa VC Due Diligence Tool

The Africa IC Checklist

A free Africa VC due diligence tool built on operator experience. Six dimensions covering the Africa-specific assumptions that survive every pitch meeting but rarely survive deployment. Run a deal in under 10 minutes. Output: the questions to ask before you wire.

GON is the operator intelligence layer for African private capital - built from twelve years inside the distribution stack, maintained against primary institutional sources, and validated against real deal outcomes.

v3.2 - April 2026
Coverage note. Assessment is strongest in Francophone West Africa and CEMAC markets, where benchmarks are grounded in direct operator experience. East Africa dimensions are benchmarked against institutional sources but not operator-validated at the same depth. The operator analysis behind this tool is published at Growth Operator Notes - see the Africa market entry assumptions article and the MTN infrastructure analysis for the operator reasoning behind the distribution and regulatory dimensions.
What this is +

This is not a scoring tool. It is a structured challenge built on twelve years of operating digital products across African markets. It surfaces the assumptions that survive every pitch meeting because they live below the line of the financial model.

It works by forcing specific inputs across six dimensions. Vague answers trigger gates that tell you exactly what you do not yet know. The memo output gives you questions, not verdicts. A deal that clears all six dimensions is not approved - it is adequately stress-tested on these six.

This tool improves through use. Every war games retrospective and every piece of investor feedback makes the benchmarks sharper. If it missed something on your deal, the feedback form at the end of the memo tells us. That gap becomes the next version.

If you are filling this in to look good, you are wasting your time. The tool rewards honesty and penalises polish.

No information entered here is stored, logged, or used beyond generating your analysis. This session does not persist.
Step 1 of 7 Deal context

Deal context

Three required fields. The memo output is calibrated to the specific market, sector, and stage you enter here.

Operator benchmarks are most specific for Ivory Coast, Senegal, Cameroon, Nigeria. Other markets use institutional source benchmarks.

Operator lens

Distribution economics and moat

"The cost of the distribution model is one question. Whether that model is defensible is a different and more important question. In African markets a well-capitalised competitor can replicate an agent network in six months by paying higher commissions. The moat is not the channel - it is what makes the channel exclusive."

Enter the exact number the founder claims. If they gave a range, enter the midpoint.

A margin without a stack breakdown cannot be validated. Each intermediary - agent, superagent, telco, bank - takes a cut before revenue reaches the company.

Insufficient information on distribution economics. A single gross margin number is not a distribution model. Do not proceed to IC without the full stack broken down by layer and a clear answer on channel exclusivity.
Operator lens

Regulatory timing and incumbent capture

"The regulatory risk most founders describe is government action against them. The risk most investors miss is regulatory capture by an incumbent - a telco or bank with regulator relationships using licensing conditions or delays to disadvantage a competitor. In Francophone West Africa, this pattern is more common than direct government intervention."

Depending on a partner's licence (e.g. operating on Orange Money's e-money licence) creates a risk that is not reflected in the founder's cap table or financial model.

In WAEMU markets, BCEAO Instruction 001/2024 restricts exclusivity arrangements. In Ivory Coast, ARTCI (artci.ci) has enforcement history. Knowing the incumbent's regulatory playbook is part of the diligence.

Insufficient information on regulatory exposure. A founder who cannot name the specific decision that breaks their model has not stress-tested the operating environment. Flag before IC.
Structural

Exit pathway realism and acquirability

"The exit question has two parts. Who would buy it - and is it buyable? In African markets, the gap between a growing company and an acquirable company is large. Informal governance, unclear cap tables, and related-party structures that would fail a multinational's due diligence are common at early stages."

Africa's exit-to-investment ratio was 0.2x in 2024 (AVCA 2025). Secondaries hit a record 26% of exits. An exit thesis without named acquirers is a hope, not a thesis.

Insufficient information on exit realism. Africa's exit-to-investment ratio was 0.2x in 2024. An exit thesis without named acquirers and confirmed acquirability is not a thesis. Source: AVCA African Private Capital Activity Report 2025.
Operator lens

Demand validation and recurrence

"Demographics are not demand. And first-time paying customers are not recurring revenue. The question that predicts whether unit economics hold at scale is not whether someone paid once. It is whether they came back without a promotion or a founder intervention."

A 2024 systematic review found WTP surveys overstate actual willingness to pay by 23-29% in collectivist cultures. Enrollment gaps of 30-50 percentage points are documented across African markets. Source: Bayked et al., Frontiers in Public Health, 2024.

Copia Global (Kenya, 2024 shutdown) publicly stated free delivery as a feature in their TechCrunch Series C. When unit economics required removing it, order frequency collapsed. The subsidy removal test is the most direct demand validation for logistics and e-commerce models.

Demand based on demographics or surveys alone is insufficient. A 2024 peer-reviewed systematic review found face-to-face WTP surveys overstate actual willingness to pay by 23-29%. Do not proceed without at least one paying customer data point and a retention figure. Source: Bayked et al., Frontiers in Public Health, April 2024.
Operator lens

Team resilience and network depth

"Experience predicts understanding. Network predicts survival. The three moments that kill African market companies - regulatory intervention, banking relationship crisis, key distributor defection - all require phone numbers, not just experience."

Ivory Coast and Senegal share a currency and have different operating environments. Nigeria and Ghana share a language and little else operationally. Regional experience does not substitute for country-specific depth.

Team resilience is under-assessed. The three crisis moments that kill African market companies all require specific network relationships, not just experience. A team with no named relationships with regulators, banking partners, or channel owners is structurally exposed. Flag before IC.
Structural

Currency and FX risk

"For a USD or EUR fund investing in local-currency revenue businesses, the return is a function of the exit multiple and the currency trajectory. A business that grows 40% in NGN terms can return nothing in USD terms if the naira depreciates 50% over the hold period. Nigeria 2023 is not a hypothetical."

The NGN lost approximately 70% of its value against USD between 2022 and 2024. The EGP lost approximately 50% in 2022-2023. CFA franc markets carry lower FX risk due to EUR peg, but repatriation cost is still a return driver.

Currency risk is unassessed. For USD/EUR funds investing in local-currency revenue businesses in high-volatility markets, FX exposure is often the primary return risk - not the business model.

Review your inputs

Check your answers before generating the IC memo. Click "Edit" on any section to go back and change inputs.

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Running operator analysis...
About this Africa VC due diligence tool. The Africa IC Checklist is built and maintained by Jean-Philippe Ouandji, a growth operator with 12 years scaling digital products across African fintech, telecom, and SaaS markets. It covers six Africa-specific due diligence dimensions that standard investment frameworks systematically underweight: distribution economics and moat defensibility, regulatory timing and incumbent capture, exit pathway realism, demand validation and recurrence, team resilience and crisis network depth, and currency and FX risk. The tool is free, runs entirely in the browser, and stores no data. Benchmarks are sourced from primary institutional sources and updated as the operator data layer deepens. The Africa IC checklist improves through use - feedback from investors running it on live deals is the primary source of benchmark updates.