African Development Bank has approved €7 million equity investment in Partech Africa Fund to increase investment funding to Africa’s entrepreneurs
According to a statement from the bank yesterday disclosed that Partech is a Venture Capital Fund dedicated to investing in tech-enabled, innovative, high growth potential and talented entrepreneurs operating early stage companies and applying relevant technologies to address fundamental market constraints with potential to scale across the continent.
With hubs/offices in Dakar, Nairobi and planed for Lagos, the Fund is targeting nine Sub-Saharan African countries (South Africa, Ghana, Nigeria, Ivory Coast, Cameroun, Senegal, Tanzania, Kenya and Uganda).
The bank noted that the fund focuses on financial inclusion,such as fintech, insurtech, pay as you go, off-grid energy as online and mobile consumers.
The other areas are tech adoption in enterprises, especially in industry, education, logistics and transport, health, and agriculture value chain applications.
The Fund successfully completed its first close in January this year with €71 million and is targeting a total fund size of at least €100 million through a 2nd round expected to be closed by October/November this year.
Under the framework of the Boost Africa Programme, AfDB will provide €7 million equity investment in the second close. The contributions from both the African Development Bank and the European Investment Bank form part of the Boost Africa Programme, which assists Partech in its fund raising.
The Bank is expected to have a seat in the Advisory Board of the Fund.
The fund’s focus aligns well with the Boost Africa objectives to invest in high growth innovative start-ups with a strong social / Base of the Pyramid outreach and impact.