Here Is A List Of Some International Investment Funds Available To Startups In Africa

February 16, 2020

Access to funds is one of the major determinants of success for any startups in Africa. While banks peg their interest rates so high and more family members and friends are getting more financially unstable and unable to help, there are, however, international grants and investment funds that are targeted at startups in Africa. The following are some of them:

1.The International Finance Corporation (World Bank Group)

The IFC is a member of the World Bank Group and a development finance institution. Being the largest global institution targeting private sector institutions in developing countries, like Africa, startups or entrepreneurs desiring to establish new ventures or expand existing enterprises can approach IFC directly by submitting an investment proposal to the field office closest to the location of the proposed project in order to be able to procure some funds from it. 

Investment Targets so far.

  • More than $25 billion has been invested by the IFC in African businesses and financial institutions, and its current portfolio (in 2017) exceeds $5 billion.
  • The IFC invested $3 million in Madagascar’s SMTP Group towards the expansion of its company’s poultry business in the country in 2015.
  • The IFC provided a $7.5 million equity in Zoona, a financial services business that provides in-country and cross-border money transfers in Zambia, Malawi and Mozambique in 2015
  • In 2018, it made $11.6 billion in long-term investments in 366 projects, and additionally mobilized nearly $11.7 billion to support the private sector in developing countries.

Click here for more information

2. Bill & Melinda Gates Foundation

The Bill & Melinda Gates Foundation is a private foundation founded by Bill Gates and his wife, Melinda in 2000.

The foundation is acclaimed to be the largest transparently run private foundation in the world, with an endowment fund of $50.7 billion as at 2017.

The foundation has three offices in Africa — in Ethiopia, Nigeria, and South Africa. The foundation also maintains presence in Kenya, Tanzania, Ghana, Senegal, Zambia, and Burkina Faso.

Investment So Far

  • The foundation awarded a grant of $4.48 million to Sidai Africa, a social enterprise operating in the livestock sector in Kenya in 2016.
  • In June 2017, $2.4 million grant was awarded to Sanergy, an organization that provides access to hygiene and sanitation solutions to people who live in urban slums.

3. Helios Investment Partners

Helios Investment Partners was founded in 2004. The private equity and Venture Capital firm focuses its funds on startups in Nigeria, South Africa, and Kenya.

Th firm manages over $3 billion funds in its care. It seeks to invest between $15 million and $200 million in an individual transaction.

Investment Targets So far:

  • The private equity firm has major focus on businesses in the financial services, power, distribution, utilities, telecommunications, travel, leisure, fast moving consumer goods, logistics, and Agro-allied sectors.
  • In 2010, the firm invested $92 million in Interswitch, a Nigerian payment services provider.
  • The firm also invested $10 million in OffGrid Electric, a solar energy company in Tanzania that is spreading across East Africa, in 2016.
  • MallforAfrica, Bayport,GB Foods, Starzs Investment among several others are some of its investments.

Click here to know more

4. African Women Development Funds (AWDF)

Although AWDF does not give grants and funds to individuals, startups or organisations in Africa stand a chance  of getting grants  of funds starting from $8000 to $50,000.

Investment So far:

  • AWDF funds only local, national, sub-regional and regional organisations or startups in Africa working towards women’s empowerment in six thematic areas: Women’s Human Rights, Economic Empowerment and Livelihoods, Governance, Peace and Security, Reproductive Health and Rights, HIV/AIDS, Arts, Culture and Sports.
  • In 2018, $6.8 M was granted to 75 women’s groups in 23 countries.
  • The organization has provided about $41.8 million grants since its establishment in 2001.
  • To apply for a grant, follow this link

5. FMO Entrepreneurial Development Bank

Founded in 1970, FMO is a Dutch development bank that provides funds to entrepreneurs, companies, and projects from developing and emerging markets. FMO is a public-private partnership. The Dutch government has 51% ownership stakes in the company while 49% stakes are held by commercial banks, trade unions and other private-sector representatives.

Investment So far

  • FMO has funded several projects across Africa. Its help come by way of equity, loans and guarantees; capital market transactions; mezzanine and other tailor-made solutions; and long-term and short-term project financing.
  • FMO provides support to sectors with the highest possibilities of long-term impact. These sectors include: Financial Institutions, Energy and Agribusiness, and Food & Water.

To know more click here.

6. Investment AB Kinnevik

Investment AB Kinnevik is a Sweden-based company founded in 1936. It is one of the largest listed investment companies in Europe with total assets of over $7 billion.

Investment So far:

  • The firm’s investment in Africa include: Millicom, Tele2, Jumia, MTG, Konga, Bayport Financial Services, Rocket Internet, Iroko Partners and several others.
  • It is a leading investor in emerging markets like Africa.
  • Its primary areas of focus include entrepreneurs and businesses in the following business areas: Communications, Ecommerce & Marketplaces, Entertainment and Financial Services and others.

To know more click here

7. Tony Elumelu Entrepreneurship Program

Every year, the Tony Elumelu Entrepreneurship Program (TEEP) selects 1,000 entrepreneurs from across Africa for a program of training, mentoring and funding.

The program was founded by Mr. Tony Elumelu, a Nigerian entrepreneur

Investments So Far:

  • The aim of the fund is that over a ten-year period, the 10,000 start-ups and young businesses selected from across Africa will create one million new jobs and add $10 billion in revenues to Africa’s economy.
  • The focus of the TEEP Fund is on the citizens and legal residents of all 54 African countries.
  • Any for-profit business based in Africa with a less than three years existence period is qualified to apply for the funds. This is however not limited to new business ideas.
  • All participants in the program receive a $5,000 seed investment in their business.

To know more click here

8. African Development Foundation

The focus of the African Development Foundation (ADF), an independent Federal agency of the United States government, is to support African-led development that build community enterprises by providing them with seed capital and technical support.

Investment So Far:

  • USADF helps organizations and businesses in Africa to create and sustain jobs, improve income levels, achieve greater food security, and address human development needs.
  • In 2014 alone, the USADF gave out 336 grants worth over $50 million and impacted over 1.3 million people in Africa.
  • The USADF beams its light on Small holder Farmers, youths, women and girls, and recovering communities.
  • It provides grants of up to $250,000 directly to hard-to-reach and under-served community enterprises that are ready to do their part.
     
     To apply for a grant, click this link

9. Omidyar Network

Founded by Pierre Omidyar, the billionaire and founder of eBay in 2013, the Omidyar Network invests in both for-profit and non-profit organisations across the world.

Investment So Far:

  • The Network has invested over $1.46 billion in several ventures across Africa through grants and equity investments.
  • In 2009, the firm invested $1.8 million in Bridge International Academies, a for-profit company that runs a network of low-cost primary schools in East Africa.
  • The Network gave $400,000 to BudgIT, a start-up that gives Nigerian citizens access to, breakdown of and understanding of public budgets in 2014.
  • The Network collaborated with Echo Venture Capital, in 2015, to invest about $1.2 million in Hotels.ng, a Nigerian online hotels listing and booking startup.
  • The firm’s primary focus is on businesses and organisations with high social impact potential. It can fund or grant businesses up to $4 million.

For more information click here

10. Seedstars World

The Switzerland-based Seedstars is a venture builder that organizes the annual Seedstars World competition, one of the biggest seed competitions for startups in emerging markets. 

It targets its funds on  startups  in 35+ countries around the world, whether in Africa, Asia, South America or the Middle East.

Investment So Far:

  • Every year, participants from over 25 cities across Sub-Saharan Africa participate in a continental tour where they compete in local competitions.
  • A winner from each country gets invitation to attend the grand finale at the Seedstars Global Summit in Switzerland where they compete for up to $500,000 in equity investment and other multiple prizes.
  • Seedstars has invested $330,000 in SimplePay, a young Nigerian third-party payment processing company in 2014.
  • In 2016, Giraffe triumphed over 63 other startups from 55 countries to win the grand prize of $500,000 in equity investment funding. Giraffe is a South African company that makes low-cost automated recruitment solutions possible for South Africans.

To join Seedstars click here.

11. CDC

The CDC is founded in 1948. The CDC is the UK’s Development Finance Institution (DFI) which is wholly owned by the UK Government’s Department for International Development (DFID). It has a history of making successful investments in businesses which have become industry leaders.

Investment So far:

  • CDC supports businesses throughout Africa and South Asia, and its portfolio of investments is valued at over £3.9 billion (£3.8 billion in 2016)
  • In November 2013, CDC announced a US$18.1m investment into Feronia, an agricultural production and processing business focused on palm oil plantations and arable farming in the Democratic Republic of Congo (DRC).
  • The CDC equity investments team aims to invest in established businesses with revenues of $10m+ and a track-record of profitability.
  • CDC considers start-ups or green-field projects only where there is a strong sponsor (individual or company) who will co-invest alongside CDC and has a strong track-record and delivery capability.
  • It focuses on: Infrastructure (especially power), Manufacturing, Health, Education, Food-processing and Construction.

For more click here

Read also: South Africa Set To Get An Investment Fund And A New State-owned Bank 

12. Acumen Fund

Acumen is not looking for equity investments in businesses. It is a charity organisation incorporated in 2001 with seed capital from the Rockefeller Foundation, Cisco Systems Foundation and three individual philanthropists.

Investment So Far:

  • Acumen Fund invests in entrepreneurs who have the capability to bring sustainable solutions to big problems.
  • Acumen Fund invests in fearless entrepreneurs and early stage innovators tackling the problems of poverty .
  • To qualify for investment, entrepreneurs must be located in, or have significant operation or impact in East Africa, West Africa, India, Pakistan or Latin America.
  • The Fund has invested over $110 Million in breakthrough innovations in over 102 companies across 13 countries,
  • To Apply for investment, follow this link:

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com

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