The African Development Bank (AfDB) has announced the approval of a $7.5 million equity investment in Africa Tech Ventures (ATV). This is to boost operations of scalable start-ups using technology to innovate in consumer goods, education, logistics, energy, fintech, agriculture or healthcare.
This is a combined partnership between AfDB, the European Commission and the European Investment Bank – which has already committed US$10 million to the Fund.
The investment will facilitate ATV providing seed investment to early stage companies that improve and facilitate access of essential goods and services to the underserved, effectively promoting inclusive growth.
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“Africa is experiencing rapid mobile penetration. This provides huge opportunity to the development of start-ups and small and medium scale enterprises. But there is a scarce risk capital to venture capital funds targeting early stage businesses,” said Stefan Nalletamby, the Bank’s Director for Financial Sector Development.
This equity investment will leverage innovations to leapfrog technologies and harness key opportunities that have the potential to scale across Africa.
ATV will now grow from 1 thousand to 1 million users in line with its primary goal – to expand economic opportunities for African youth by providing 15 to 20 start-ups with capital throughout their growth cycle. South Africa’s Eskom, the Nigerian government as well as Namibia have been backed AfDB.