€ 9.8 million equity investment to support VC investments in African start-ups
The AfDB and EU will invest €9.8 million in the Cathay-AfricInvest Innovation fund to support African start-up businesses
The African Development Bank and the European Union will join forces to support African start-ups from seed to growth. On 19 April 2022, the Bank announced by taking an equity stake in the Cathay-AfricInvest innovation fund, sponsored by AfricInvest Capital Partners and Cathay Innovation SAS.
The press release also suggests that €7 million will come from the Bank’s resources, while the European Union will support the remaining €2.8 million. In addition, it is stated that the fund will target start-ups in sub-Saharan Africa, led by women and youth, that promote financial inclusion, off-grid energy solutions, health solutions and e-commerce.
This will contribute to the achievement of Sustainable Development Goal (SDG) 9 “Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation”.
Over the years, African startups have been attracting more and more investment from various partners. They are attracted by the potential of African startups to disrupt things and add value to their communities by contributing to the 17 Sustainable Development Goals.
In 2021 alone, Techcrunch reports that African startups have raised between $4.3 and $5 billion. This figure varies widely depending on who compiled it, but any amount in the billions of dollars is an acceptable estimate.
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