Africa's investment talent challenge: Why salaries matter for the future of venture capital

Africa’s venture capital industry is often discussed in terms of funding rounds, unicorns, exits and the billions of dollars invested in promising startups. Far less attention is paid to the professionals working behind the scenes: the analysts evaluating businesses, the associates negotiating deals and the fund managers responsible for delivering returns.

Yet these professionals are essential to the industry’s success. And a revealing study suggests that Africa still has some work to do when it comes to rewarding and retaining them.

Published in February 2025, the African Investment Salaries Report, developed by Dream VC and A&A Collective, provides a rare look at compensation across the continent’s investment industry. Based on 209 responses from professionals across 28 African countries, the report examines salaries, bonuses, carried interest and career progression in venture capital, private equity and related investment roles.

Its findings tell a story that goes well beyond paychecks.

The salary gap behind Africa’s investment ambitions

Perhaps the most striking finding is the difference between what investment professionals earn in Africa and what their counterparts earn elsewhere.

An analyst working in Africa earns approximately $21,000 annually, compared with $28,000 outside the continent. At associate level, the gap widens to $26,000 versus $38,000. For investment managers and principals, the difference becomes even more pronounced: approximately $70,000 in Africa compared with $110,000 internationally.

These figures raise an uncomfortable question. How can African investment firms compete for talent when professionals with similar skills can command significantly higher salaries elsewhere?

The answer is not simply that African firms pay less. Much of the explanation lies in the structure and size of the funds themselves.

According to the report, the median assets under management stand at approximately $50 million for venture capital funds, compared with $87.5 million for private equity funds.

For a venture capital firm managing $25 million and charging a 2% annual management fee, that translates into roughly $500,000 a year to cover salaries, operations, legal expenses and other management costs.

With such constraints, competing with larger international funds becomes difficult, particularly when recruiting experienced investment professionals.

The question of carried interest

Salaries, however, tell only part of the story.

In venture capital and private equity, carried interest, commonly known as carry, can represent a significant component of long-term compensation. It allows eligible investment professionals to share in the profits generated by successful investments.

In theory, this creates an incentive to remain with a fund and contribute to its long-term performance.

In practice, the report reveals that carry remains largely concentrated among senior professionals. Analysts and associates frequently receive none, while principals, portfolio managers and directors have greater opportunities to participate.

Even at senior levels, allocations remain uneven, with many professionals receiving little or no carried interest.

This matters because venture capital is a long-term business. Investment outcomes can take years to materialise, and retaining experienced professionals throughout that journey is critical.

For emerging African fund managers, more transparent and inclusive carry structures could become an important tool for attracting talent without placing excessive pressure on immediate operating budgets.

A young industry with growing expectations

Another interesting finding concerns the profile of Africa’s investment workforce.

More than 70% of survey participants were between 25 and 34 years old, highlighting the relatively young talent base captured by the study. Around 40% hold a master’s degree, while 39% have completed some form of international education.

The report also shows that women represent approximately 43% of respondents, although their presence declines in senior investment positions.

These findings point to an industry that has succeeded in attracting educated and ambitious professionals but still faces challenges in building clear career pathways and developing a more diverse leadership pipeline.

Compensation is part of that equation, but professional development, mentorship and opportunities to participate in investment decisions are equally important.

Why this matters for Africa’s investment ecosystem

For years, conversations about strengthening African venture capital have focused primarily on mobilising more capital, attracting institutional investors and supporting emerging fund managers.

Those priorities remain essential. But capital alone cannot build a sustainable investment industry.

Funds also need experienced teams capable of identifying opportunities, conducting due diligence, supporting portfolio companies and navigating complex markets.

The 2025 report provides useful benchmarks, although its relatively small, network-based sample should not be treated as representative of every African investment firm.

Encouragingly, Dream VC and A&A Collective have launched a new compensation survey in 2026, seeking to expand the evidence available across investment and fund-support roles.

This continued effort towards transparency is important. Better information can help professionals negotiate fairly, enable fund managers to design competitive compensation packages and give investors a clearer understanding of the operating realities facing African funds.

Ultimately, the challenge is not simply to close the salary gap with international markets. It is to create an investment industry where talented professionals can build rewarding, sustainable careers without feeling that their best opportunities necessarily lie elsewhere.

Africa has spent the past decade building its startup ecosystem. The next challenge may be ensuring that the people financing its growth have equally compelling reasons to stay.