richard okello
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Interview with Richard Okello
Founder, Sango Capital
Live: Johannesburg, South Africa
Africa-focused investor Richard Okello has compared investing on the continent to trying to drink a glass of wine without spilling a drop while riding a speedboat in rough seas. The task is to get from point A to point B while keeping the fluid intact.
In 2011, Okello founded Sango Capital, which now manages just under $1 billion. How we made it in Africa editor in chief Jaco Maritz Talked to him about the realities of putting capital to work on the continent.
Topics discussed during the interviews included:
- Rethinking risk in Africa
- high potential countries
- Industries offering the best benefits
- Navigating the Most Difficult Aspects of Work
- Sango Capital's biggest investment win
Watch the full interview below:
Richard Okello was born in Kenya, but grew up in Uganda. Then a scholarship took him to Wales, where he attended high school at the United World College of the Atlantic. From there, he moved to the United States to study at Swarthmore College, just outside Philadelphia.
Okello initiated the investment into renowned investor Ray Dalio's Bridgewater Associates in the US. He joined when the hedge fund was relatively small – managing less than $1 billion – and stayed for about nine years as it grew significantly.
After Bridgewater, Okello moved to San Francisco-based investment firm Makena Capital. Later in his tenure at Makena, he helped lead the firm's first investments in Africa.
That experience paved the way for his next step: launching his own Africa-focused investment shop, Sango Capital.
Today, Sango raises money from international investors – particularly North American endowments, foundations, family offices and pensions. It then invests that capital in African private equity, venture capital and private debt funds, while also making direct investments in local companies.
extraordinary investment
One of Sango's standout investments is Diversified Markets, the parent company of MarketSquare, a Nigerian supermarket chain founded by entrepreneur Ebele Enunwa. (Our first book tells the in-depth story of how Enunwa built his business. It's available here).
Despite the steady growth of air-conditioned malls and modern grocery chains, about 90% of retail transactions in Nigeria still occur through informal channels – a vibrant ecosystem of roadside stalls, open-air markets and hawkers weaving through gridlocked traffic.
Yet, as Okello notes, a growing number of Nigerians are preferring the convenience of organized retail over haggling in informal markets. Anticipating that change paid off: Sango partially exited its stake in diversified markets a few years ago, earning what Okello described as a “very high” dollar multiple on the investment.
Another profitable investment for Sango was CMGP, a Moroccan agricultural supplier. The company provides farmers with everything from irrigation systems and water pipes to seeds and fertilizers. I went Public on the Casablanca Stock Exchange In December 2024.
mapping opportunities
When Okello was asked where he sees the most potential, he pointed to Egypt, which he describes as “very intentional about becoming a middle-income country.” One of its major advantages is its population of about 120 million. For businesses, this means a huge market where they can achieve significant scale without ever having to cross borders. Thanks to massive recent investments, he expects Egypt to soon overtake South Africa as the continent's largest economy.
Investors are also cautiously optimistic about Nigeria following a series of reforms. In particular, he highlights the removal of fuel subsidies, which previously cost the government billions of dollars per year, and the move to allow the local currency to rapidly devalue, as much-needed corrective measures.
He is equally excited about Côte d'Ivoire. The world's largest cocoa producer has been one of the continent's fastest-growing economies, achieving average annual growth of more than 6% over the past decade.
South Africa presents a different kind of opportunity. Okello admits his macroeconomic outlook is weak – a reality that has been underlined The IMF recently lowered its 2026 growth forecast Only 1.0% remained due to geopolitical shocks in the Middle East. Yet the country has a strong private equity sector, deep markets and experienced corporate operators. He compares it to Ethiopia. Despite recording strong annual growth of about 8% over the past decade, Ethiopia's relatively shallow private sector offers little opportunity for a firm like Sango.
Turning to East Africa, he sees solid potential in markets like Kenya and Tanzania. While acknowledging some political uncertainty in Tanzania, he expects the country “will probably be surprised” because the government is “doing a lot of big things”. A prime example of this is the $10 billion railway project, designed to link the port of Dar es Salaam to Lake Victoria and eventually landlocked neighbors including Rwanda, Uganda and the Democratic Republic of Congo. With several sections already completed, the network is set to overhaul the region's freight transport.
Also bullish on Morocco, Sango's managing partner has warned that properties there are becoming expensive. Valuations are likely to increase further as the country prepares to co-host the 2030 Football World Cup with Spain and Portugal, which will spur local investment. “To make money you have to be able to buy things at the right price,” he says. “You can do that sometimes in Morocco but it's getting harder.”
promising area
At a sector level, Okello is particularly keen on the African retail sector. “There is a shift going on from unorganized retail to organized retail,” he said. He also sees significant progress in fast food, an industry driven by rapid urbanization.
Private healthcare presents another promising opportunity, from pharmacies to clinics dealing with conditions such as diabetes and hypertension. “As African wealth grows, those diseases grow and you have to have service providers for them,” he explains.
Okello is also bullish on the technology sector in both its early and development stages. He points to platforms addressing online education, digital payments and inclusion of unbanked small traders into the formal financial system as attractive areas.