As stated in a press release by the African Development Bank (AfDB), the Board of Directors has approved a USD 10.50 million investment in the Seedstars Africa Ventures S.L.P. venture capital fund. This financial commitment, including USD 7 million from standard resources and USD 3.5 million from the European Union Boost Africa program, is designed to foster innovative African businesses demonstrating robust growth potential. The allocated funds will empower Seedstars Africa Ventures (SAV) to secure additional capital, extend its footprint in Africa, and attract more investors, concentrating on early-stage ventures throughout Sub-Saharan Africa.
“The fund focuses on businesses that have strong potential, are generating income and tackling key challenges in the market. It mainly targets sub-Saharan Africa, especially markets less well covered by traditional investors, and enjoys a particular focus on French-speaking countries such as Senegal, Côte d’Ivoire, Benin and Cameroon. However, it also has investments in Ghana, Uganda and Tanzania.”
“As a venture capital fund of USD 75 million, Seedstars Africa Ventures targets the start-up and launch phases of businesses tackling key constraints in the market. Initial investments are around the EUR 250,000 mark, followed by additional capital injections of €5 million to support their growth.”
Moreover, the press release emphasized that: “SAV focuses on financial inclusion and the technologies that equip businesses (fintech and insurtech); retail sales and logistics platforms that target the online and mobile consumers market; health-related technologies; pre-paid, off-grid energy; and more generally, the adoption of technology in businesses, particularly in the food-processing industry and value chains.”
The fund aims to create 9,000 full-time jobs, half for women, making a substantial economic impact. Aligned with Boost Africa’s goals, it focuses on innovative start-ups for growth and positive social contributions, complementing the African Development Bank’s strategy for poverty reduction and sustainable development. The fund supports the Bank’s High 5 priorities, investing in key sectors like agriculture, health, industrialization, and off-grid energy, contributing to regional integration and enhancing well-being in Africa.
