African Development Bank invests US$7.5 million in Africa Tech Ventures to boost innovative start-ups

The Board of Directors of the African Development Bank has approved a US$7.5 million equity investment in Africa Tech Ventures (ATV) to boost operations of highly scalable companies that use technology to innovate in key sectors such as consumer goods, corporate services, education, logistics, energy, fintech, agriculture or healthcare.

The equity investment is part of the Boost Africa Investment Program, a joint collaboration between the Bank, the European Commission (EC) and the European Investment Bank (EIB), which has already committed US$10 million to the Fund.

ATV will provide seed investment to early-stage companies that improve and facilitate access to essential goods and services to the underserved, effectively promoting inclusive growth.

The overarching goal of ATV is to expand economic opportunities for African youth by providing 15 to 20 start-ups with capital throughout their growth cycle. This will enable them to grow from 1 thousand to 1 million users.

In alignment with the Bank’s High 5 priorities, their innovations will contribute to broadening access to finance and using connectivity to reach people in urban, rural and remote locations, thus improving the quality of life of the underserved. The fund focus of early-stage technology companies also supports Industrialize Africa and Integrate Africa.

ATV investment thesis further supports the Bank’s strategies, in particular, its Regional Integration Strategies (“RISP”) for the respective regions that seek to leverage non-sovereign financing, promote private sector activities and support financial sector integration.

The US$50 million Fund intends to hold a first closing in the second quarter of 2019 and a final closing 12 months thereafter.

Original source: AfDB
Published on 18 December 2018