The African Development Bank (AfDB) is set to invest $10.50 million in venture capital fund Seedstars Africa Ventures SLP, after the bank’s board approved the decision on Wednesday 17 January.
- Seedstars Africa Ventures (SAV), based in Nairobi and Paris, is a general early-stage venture capital fund that invests in high-growth companies.
- The AfDB will invest $7 million from its regular resources and $3.5 million from the European Union’s Boost Africa program.
- The investment will enable Seedstars Africa Ventures (SAV) to raise capital, expand its presence in Africa and attract other investors.
The investment comes just a week after SAV received a $30 million equity investment from European Investment Bank (EIB) Global, in a deal backed by European Union funds. One of the EU funds in this deal, Boost Africa, contributed $10 million to EIB Global’s investment and is also participating in the AfDB deal.
“The fund’s objectives are in line with those of Boost Africa, which aims to invest in innovative start-ups that grow dynamically and have a positive social impact,” AfDB said in a statement, “Its investment strategy will reinforce the strategy of African Bank Development”.
According to the AfDB, the bank estimates that the fund will help create 9,000 full-time jobs, 50% of them for women, and have a significant economic impact.
As a US$75 million venture capital fund, Seedstars Africa Ventures targets the seed and start-up phases of businesses. Initial investments are approximately β¬250,000, followed by additional capital injections of β¬5 million to support growth.
SAV mainly targets sub-Saharan Africa, especially markets less well covered by traditional investors, and has a particular focus on French-speaking countries such as Senegal, CΓ΄te d’Ivoire, Benin and Cameroon.
- It also has investments in Ghana, Uganda and Tanzania.
- SAV focuses on financial inclusion and technologies that empower businesses (fintech and insurtech). retail and logistics platforms targeting online and mobile consumer purchases; and health-related technologies;
- Other areas include prepaid, off-grid energy. and more generally, the adoption of technology in business, particularly in the food processing industry and value chains.
According to the fund’s website, the company is invested in several companies including Poa! Internet (ISP, Kenya), Bizao (fintech, Ivory Coast) and Beacon Power Services (energy, Nigeria).