The Global Innovation Initiative Group has announced the creation of a fund to support African innovation. Over the next three years, the vehicle will invest $100 million in African early-stage tech firms.
The GIIG Africa Fund aspires for returns of more than 25%. “We are not simply opening a new fund; rather, this is the beginning of a new approach of finding and funding African entrepreneurs, as our candidates will have had to compete and be vetted in order to be considered for investment. This means they will be the best of the best, improving the odds of our investors’ success “Mahyar Makhzani, a founding partner of GIIG, stated.
Africa will be home to over one-fifth of the world’s population by 2025, according to a McKinsey research quoted by the Group, and its cities will have more people than India and China combined by 2045. As a result, consumption on the continent will rise. This will generate an estimated $5.6 trillion in trade prospects, thanks to the continental free trade agreement.
African technology startups have been smashing records for raising funds since January 2021. Fintech companies alone mobilized more than $1.44 billion in the first nine months of the year.
This indicates investor confidence as well as the dynamism of African technology.
To maximize profits for companies and investors, GIIC investments include growth support, access to high-value networks, and quicker market penetration.
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