Africa-Press – South-Sudan. THE African Development Bank has made funds available targeting early-stage innovative businesses as well as youth and women-owned businesses in Africa.
The bank (AfDB) approved an equity investment pool of €10,5 million (N$181,7 million) towards the first close of the Janngo Start-Up Fund, a pan-African tech start-up fund.
The pooled investment also promotes the Boost Africa Program, a project between the contributing partners and the European Investment Bank to support investment funds that target early-stage innovative enterprises across sub-Saharan Africa.
The support for the Janngo Start-Up Fund also aligns with the AfDB’s jobs for youth strategy, in addition to the support for private sector-led growth and entrepreneurship in African economies.
The Janngo Start-Up Fund, managed by Janngo Capital, builds, grows and invests in tech start-ups with proven business models and inclusive social impact.
The pooled funds comprise €7 million (N$127,7 million) provided by AfDB and a €3,5 million (N$631,3 million) contribution from the European Union and the Organisation of African, Caribbean and Pacific States.
The bank’s director for financial sector development, Stefan Nalletamby, said the Janngo Fund could drive the transformation from a more traditional business ecosystem into a dynamic, youth-driven, and technology-focused entrepreneurial community.
“Africa is experiencing rapid mobile penetration with Android and other platforms. This provides huge opportunities to develop innovative and high-growth-driven start-ups and SMEs (small and medium enterprises). But there is a severe scarcity of risk capital for the new and upcoming first generation of venture capital funds targeting early-stage businesses,” Nalletamby said.
The fund is envisaged to enhance the private sector by deploying technology-enabled business models for SMEs that address the needs of under-served populations, create significant employment opportunities for youth and women, and improve the quality of life for Africans.
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