The African Development Bank, AfDB, has approved $12, 000, 000 fund to support African tech startups.
AfDB raised the fund in partnership with the European Union, EU, and the Organisation of African, Caribbean and Pacific States.
Meanwhile, the new investment fund is the latest step for the Boost Africa Programme, a collaboration of the AfDB, the European Investment Bank and their partners.
Also, note that they are providing the fund through Janngo Capital.
Janngo Startup Fund hopes to create jobs for youth and women through small and medium-sized businesses.
Also, it has its Headquarters in both Côte d’Ivoire and Paris,
Janngo Capital will manage the fund to support innovation centering on social impact.
The fund is to support investments across sectors on the economy.
The economic sectors include energy, education and agribusiness.
Others are primarily in Francophone West Africa.
Breakdown of the fund:
Out of the total sum, the development bank provided $7,900,000 (€7,000,000).
The European Union and the Organisation of African, Caribbean and Pacific States contributed $3,900,000 (€3,500,000).
Meanwhile, speaking on the fund, AfDB director for Financial Sector Development, Stefan Nalletamby said as follows:
Also, the director said “Africa is experiencing rapid mobile penetration with Android and other platforms.
“This provides huge opportunities to develop innovative and high-growth-driven start-ups and SMEs.”
“But there is a severe scarcity of risk capital for the new and upcoming first generation of venture capital funds targeting early-stage businesses.”
Reasons for the fund:
The Fund is for the creation of 900,000,000 jobs through 2030.
Also, corroborating this, Janngo CEO Fatoumata BA said Africa would have over 2.2 billion people by 2050.
She said this population calls for the need for an accelerated plan to create jobs and boost quality of life.
Africa is raising more funds, including from local and international bodies.
Meanwhile, as at November 2021, the continent raised over 4billion and the funds keep coming in.