Africa’s startup ecosystem is no longer an emerging force. With the latest figures showing African startups raised US$705m across 59 deals in 14 countries in the first three months of 2026 (a 26% year-on-year increase), the sector has now firmly entrenched itself on the continent.
One of the key success factors for this fast-evolving SME landscape is the fractional CFO – an experienced finance leader who provides strategic financial guidance and oversight to companies on a part-time, contract or project basis. The role delivers crucial strategic financial leadership without the heavy costs of a full-time high-level professional at a time of tight funding conditions, rising governance expectations and the increasing complexity of running a business in volatile markets.
In parts of Africa, the fractional CFO model is still in its infancy
At its core, the rise of the fractional CFO reflects a simple mismatch: many SMEs need senior financial expertise but cannot afford it full-time.
Miriam Obo-Anderson FCCA, a Ghana-based fractional CFO and co-founder of Moracle Africa, established her practice in 2020 to address exactly this gap, aiming to ‘deliver CFO-level insights to SMEs at lower costs’.
From accountant to strategist
She notes, however, that the model is still in its infancy in some African markets: ‘Many small business owners have not understood the concept. They’re not sure what they will get from the service as compared to a full-time accountant or finance manager.’
This view is echoed in East Africa by Rajeev Chatrath FCCA, founder and CEO of the CFOO Centre. He says businesses often begin by seeking financial oversight, but soon recognise the broader role of the fractional CFO in ‘driving business performance, governance, financing and long-term planning’.
For Devialini de Souza FCCA, co-founder at IKO CFO in Kenya, working in emerging markets reinforces this shift. ‘When you live in an emerging economy, it comes with its own challenges,’ she says, forcing finance leaders to go beyond compliance, to combine technical expertise with commercial awareness and adaptability.
It works best when financial leadership is embedded early
With external pressures intensifying, as investors and lenders demand greater transparency, discipline and governance, Courage Kanyonganise ACCA, founder of Fractional Financial Services in Zimbabwe, points out that businesses need to demonstrate ‘accurate, timely and consistent financial information, clear unit economics, cashflow visibility and well-defined governance structures’.
Obo-Anderson agrees that higher governance expectations are a key driver of demand. Even as funding tightens, businesses are recognising that stronger financial leadership is essential ‘so that they’ll be able to attract funding to grow their business’.
Timing it right
Getting the timing right is key. ‘Most businesses bring in a fractional CFO at the turnaround or distress stage,’ Kanyonganise says, when problems have already surfaced, which may be too late. There is, though, a gradual shift towards earlier engagement, particularly at the scale-up stage when companies are preparing for expansion or funding.
That shift reflects a growing understanding that value is highest when financial discipline is embedded early, building systems and strategy before issues arise. Chatrath says fractional CFOs are increasingly taken on when a business is ‘preparing for expansion, improving governance structures or considering external investment’.
Value creation
The impact of a fractional CFO typically emerges across several interconnected domains.
Fundraising preparation is often the entry point, Kanyonganise says, as it requires ‘a high level of financial expertise, credibility and strategic positioning’. Alongside this comes financial discipline: budgeting, forecasting and cashflow management that can withstand scrutiny.
For Obo-Anderson, the foundation lies in building structured financial systems and clean reports. ‘A good reporting system will instil financial discipline, help make better strategic decisions and put any business in a position to attract funding,’ she says.
The most significant value often lies in decision-making
Alongside this, though, comes broader strategic input. According to Chandan Kumar Sharma ACCA, co-founder of Statrisk Consulting in Kenya, the role requires a ‘360-degree view of a business’, because ‘everything in one way or another touches finance’. In practice, that means working across operations, pricing, supply chains and strategy – not just finance.
For many founders, the fractional CFO becomes a trusted adviser, increasingly valued as someone who can challenge thinking and provide an independent perspective, particularly in fast-moving or uncertain markets.
Navigating complexity
Africa presents distinct challenges for finance leaders: currency volatility, regulatory complexity, infrastructure gaps and constrained access to capital. In this context, the CFO’s role often becomes ‘less about reporting and more about navigating uncertainty and driving resilience’, according to Kanyonganise. In this context, challenges are part of daily operations.
Obo-Anderson highlights similar pressures in Ghana and beyond. ‘Unstable political climate, currency volatility and infrastructure gap’ all shape how finance leaders operate, she says, adding that planning in such environments requires a different approach. ‘More aggressive cash flow forecasting, increased focus on liquidity, buffers and contingency funding and, tighter working capital management are essential,’ she explains.
Financial planning must combine structure with flexibility, De Souza says. Scenario planning is essential, alongside strong cashflow management and liquidity control, while CFOs must engage actively with stakeholders, from banks and investors to regulators and suppliers.
Tech challenges
Technology is both an enabler and a challenge for the fractional role. On one hand, it makes the model viable. Cloud systems and digital tools allow fractional CFOs to manage multiple clients and deliver real-time insights.
On the other hand, poor tech implementations remain widespread. Sharma points out that many African businesses have invested heavily in ERP systems but fail to use them properly. The role for the fractional CFO here is to bridge the gap, ensuring systems are properly implemented and aligned with business needs.
You need to interpret numbers, challenge decisions and influence outcomes
Skills for the role
Finance professionals interested in becoming a fractional CFO should be aware that experience is critical. Chatrath points out that many finance professionals are technically strong but lack exposure to ‘strategic financial leadership, complex transactions, governance structures and investor engagement’, which are vital ingredients.
Equally important is mindset. The role requires a shift from execution to advisory, from producing numbers to interpreting them, challenging decisions and influencing outcomes.
It also demands confidence. The value lies not just in technical capability, Sharma says, but in whether clients ‘value what a fractional CFO says, how they think’ and the perspective they bring.
A permanent shift
For some organisations, the fractional CFO will be a stepping stone to a full-time hire. For others, it will become a long-term strategic partnership. Either way, Chatrath believes the model will ‘continue to grow significantly across Africa’ as more businesses recognise the value of accessing senior expertise without committing to a permanent role.
