- AfDB is providing equity investment for African start-ups.
The Board of Directors of the African Development Bank (AfDB) has approved an equity investment of €9.8 million to promote venture capital investments in African start-ups.
The equity investment includes €7 million in funds from the African Development Bank’s resources and an additional €2.8 million provided by the European Union (EU) in partnership with the Organisation of African Caribbean and the Pacific States (OACPS).
The investment will assist Cathay-AfricInvest Innovation Fund to meet its target of securing €110m to invest in over 20 early-stage ventures across sub-Saharan Africa. The Innovation Fund focuses on financial inclusion (financial tech and insurance tech), retail and logistics platforms targeting online and mobile consumers, healthcare technologies, and pay as you go, off-grid energy technologies.
More recently, the Innovation Fund has expanded its focus to include start-ups harnessing new digital opportunities created as a result of the Covid-19 pandemic or with high potential to help fight the coronavirus.