The Choose Africa initiative will now offer African startups funding and support tailored to the upstream phases of their development to meet their needs, particularly at the startup stage of their business. The merger of Digital Africa and Proparco will result in a total investment of 130 million euros ($150m) for African digital startups by 2025.
“By equipping itself with new capacities intended to better support African startups from the startup phase, Proparco is continuing its efforts in favor of African micro-businesses, in accordance with the will expressed by the President of the Republic Emmanuel Macron in Ouagadougou . The synergies created by the merger between Proparco and Digital Africa will make it possible to offer financing and support adapted to the different stages of development of startups. This merger will amplify the success of the Choose Africa initiative and its impact on job creation and development ”declared Grégory Clemente, Managing Director of Proparco.
Here Is What You Need To Know
- AFD Group has been advancing the funding and assistance of start-ups, micro-enterprises, and SMEs on the African continent through the Choose Africa program since 2018.
- While the program has been a huge success, Proparco wants to go even further to satisfy the needs of entrepreneurs, especially at the very beginning of their business development: from ideation to rapid expansion.
- With the addition of this additional component, the Choose Africa initiative will now be able to provide African start-ups, micro-businesses, and SMEs with a comprehensive range of financing options to help them grow at all phases of their development.
- Proparco will create synergies with Digital Africa during the start-up phase, which will be endowed with strengthened capacities, particularly in terms of small ticket financing. Proparco will continue to invest in start-ups in order to help them scale up and grow in the future stages of their development.
- Between 2022 and 2025, a total of 130 million euros will be committed to help African digital start-ups, more than tripling the 65 million euros declared by the President of the Republic in 2018 and already committed.
“In 2020 Bridge by Digital Africa was launched, a fund designed by Digital Africa and operated by Proparco to enable players in the digital economy to continue their development in the post-COVID economic crisis phase. This project is a success and has led us to consider a closer merger to support innovative companies at the different stages of their development. By combining Proparco’s financial expertise with Digital Africa’s ability to source solutions with real market potential and support talents, we are creating a powerful tool at the service of digital innovation ‘made in Africa’, ”added Stéphan- Eloïse Gras, Executive Director of Digital Africa.
THE CHOOSE AFRICA INITIATIVE IN KEY FIGURES
The French initiative Choose Africa finances and supports startups, VSEs, and SMEs on the continent, putting President of the Republic Emmanuel Macron’s speech in Ouagadougou in 2017 into practice. Since 2018, the AFD Group has been reaffirming its commitment and putting all of its resources behind African entrepreneurship, which is critical for job creation and access to basic goods and services.
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To date, 2.5 billion euros have been pledged, with over 600 million euros allocated to the Resilience component, which was launched in November 2020 in response to the Covid-19 crisis.
More than 200 partners – banks, investment funds, microfinance institutions, and others – received funding in the form of loans, investments, guarantees, and technical assistance for the benefit of more than 26,000 start-ups, VSEs, SMEs, and tens of thousands of micro-entrepreneurs.
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Within five years, 1.5 million direct and indirect jobs will be created or maintained.
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