Digital Africa has announced its strategic investment in four innovative African startups, marking a significant milestone for the Fuzé initiative. These dynamic additions to the portfolio showcase Digital Africa’s commitment to fostering technological solutions aligned with Africa’s economic landscape. The startups include: Valorigo, MONSAPO, REasy, and Kwely Inc.
Valorigo: Valorigo is an online marketplace based in the Democratic Republic of Congo, streamlining access to healthcare products. By providing consumers with an easy-to-use tool to compare and access healthcare products, #Valorigo enhances sales and visibility for pharmacies. Valorigo has received support from partners IMPACT Lab and Kobo Hub.
Kwely Inc: A B2B e-commerce platform focusing on Made-in-Africa products, Kwely aspires to be the leading African B2B e-commerce platform, redefining perceptions of African products and transforming the interaction between African buyers and sellers globally.
MONSAPO: Specializing in eco-friendly and sustainable cleaning products, MONSAPO, a Tunisian startup, operates on circular economy principles, catering to both individuals and professionals.
REasy: Supporting African SMEs in global financial transactions with suppliers and partners, REasy emphasizes speed, traceability, and cost efficiency, simplifying payment processes and saving considerable time for African SMEs.
Digital Africa’s investment mechanism, Fuzé, has played a pivotal role in transforming funding accessibility for startups in Francophone Africa. Bolstered by Proparco’s support, this collaboration aims to cultivate opportunities, facilitate funding avenues, and amplify visibility for startups crafting technological solutions aligned with Africa’s economic landscape.
Digital Africa’s initiatives, including Bridge, Talents 4 Startups, and Fuzé, have already made indelible marks. The Talents 4 Startups program, with over 10,300 applications, successfully trained 294 students in its pilot phase. The second edition aims to deploy 1,000 scholarships across Africa and enhance professional integration strategies in collaboration with Edtech partners.
With an investment envelope of €6.5 million, #Fuzé comprises ideation tickets at €20K, follow-on tickets at €30K, and cumulative tickets at €50K. This funding initiative addresses startups’ financial needs during inception, positioning them for continued growth through subsequent phases.
Digital Africa continues to support businesses in later growth phases through initiatives like the Bridge Fund and the collaboration with BPI France on Africa Next. The ethos behind #Fuzé is to provide startups with the necessary tools to flourish, ensuring a seamless continuum from inception to sustained success.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.
Digital Africa has injected capital into GARA, the pan-African platform reshaping the distribution landscape for video games, books, and comics across the continent.
Marked by a substantial infusion of funds from Fuzé, GARA is gearing up for an assertive expansion, capitalizing on the digital wave sweeping through Africa. This investment not only underscores Digital Africa’s commitment to catalyzing African creators but also signifies a resolute endeavor to drive the indigenous tech industry to unprecedented heights.
Teddy Kossoko, commenting on the transaction, emphasized, “Leveraging Fuze’s extensive experience and extensive network, we anticipate a seamless execution of our global vision, propelling us towards our next phase of growth.”
Digital Africa, originating under the patronage of President Emmanuel Macron at Vivatech five years ago, has emerged as a pivotal force bolstering nascent digital entrepreneurs across the African landscape. Bolstered by a renewed vision and a robust budget exceeding 30 million euros for the upcoming triennium, Digital Africa, now seamlessly integrated as a Proparco subsidiary, is poised to redefine its role as the preeminent catalyst for nurturing opportunities, facilitating funding, and amplifying visibility within the burgeoning African startup ecosystem.
The underlying FUZE investment mechanism, a crucial facet of the organization, has played a transformative role by streamlining funding access for embryonic startups in Francophone Africa. Through an intricate network comprising 60 venture builders, Digital Africa has meticulously curated a cohort of startups, resulting in a noteworthy 14 approved projects emerging from a competitive pool of 800 applications. This approach underscores a commitment to fostering collaboration and co-investment with on-ground partners, nurturing a dynamic and thriving ecosystem. Notably, the success of Neolean, a Senegalese Edtech trailblazer backed by Fuzé, has not only validated the approach but also attracted supplementary endorsements from the General Delegation for Rapid Entrepreneurship of Women and Youth (DER/FJ) in Senegal.
Empowered by an invigorated vision, a robust financial commitment, and fortified by Proparco’s patronage, Digital Africa stands ready to spearhead a new era. It promises to engineer opportunities, facilitate funding avenues, and enhance visibility for startups at the forefront of sculpting technological solutions that resonate with Africa’s tangible economic landscape and its populace.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
Digital Africa, born five years ago under the presidential impetus of Emmanuel Macron during Vivatech, has emerged as a formidable force in supporting and financing early-stage digital entrepreneurs across the continent. With a renewed vision and a budget exceeding 30 million euros for the next three years, the organization, now a subsidiary of Proparco, is poised to become the leading catalyst for opportunities, funding, and visibility for startups driving technological solutions for Africa’s real economy and its people.
Isadora Bigourdan, the CEO of Digital Africa, reflected on the organization’s journey and its achievements thus far. The initial challenge was to transform a visionary presidential initiative into a sustainable structure that could effectively support and finance young African entrepreneurs. Digital Africa overcame this challenge by adapting its work methods and fostering collaborations with depoliticized entrepreneurs already shaping the post-digital world. Today, Digital Africa functions like a startup itself, embracing open access, transparency, and a performance-driven culture. Leveraging data, the organization ensures efficient allocation of funds and continuous impact assessment.
Digital Africa’s diverse range of programs, including Bridge, Talents 4 Startups, and Fuzé, have already made significant impacts. The Talents 4 Startups program garnered an overwhelming response, with over 10,300 applications from African youth. In collaboration with nine partner training organizations across ten countries, Digital Africa successfully trained 294 students in its pilot version. The program has also established valuable partnerships with Make It and the German cooperation, expanding its scope and impact. Job fairs and speed pitching events have facilitated connections between trained talents and startups seeking their expertise, creating employment opportunities and fostering entrepreneurship. Encouraged by this success, Digital Africa is gearing up for the second edition of Talents 4 Startups, with plans to deploy 1,000 scholarships across Africa and enhance professional integration strategies with Edtech partners.
Isadora Bigourdan is the CEO of Digital Africa. Image credits: Isadora Bigourdan
Digital Africa’s FUZE investment facility has been another pivotal achievement. By providing streamlined access to funding for early-stage startups in Francophone Africa, Digital Africa has empowered promising entrepreneurs. Through a network of 60 venture builders, including renowned actors, the organization identifies and supports startups, resulting in 14 final approvals out of 800 applications received. Collaboration and co-investment with partners on the ground have been prioritized, ensuring a stronger ecosystem. Notably, the success of Neolean, a Senegalese Edtech company funded by Fuzé, has led to additional funding from the General Delegation for Rapid Entrepreneurship of Women and Youth (DER/FJ) in Senegal.
Digital Africa’s recent transition to a subsidiary of Proparco with its own dedicated budget of 30 million euros over three years signifies a new phase for the organization. By adopting a Europe-Africa approach and expanding its team to 20 individuals with diverse backgrounds and expertise, Digital Africa aims to maximize its impact. An extensive network of 15 connectors situated in different African countries further drives inspiration and collaboration. Despite the need for ongoing education regarding its unique approach in the institutional world, Digital Africa maintains flexibility to meet the evolving needs of startups. This adaptability was evident in the successful transformation of the Bridge program, initially created with a 5 million euro budget to address COVID-19-related challenges. Building on its achievements, Digital Africa increased the budget by an additional 2 million euros, ensuring continued support for startups.
Looking ahead, Digital Africa intends to establish a strategic committee of IT experts in collaboration with administrators from Proparco and Expertise France. This move is aimed at solidifying Digital Africa’s position as a reference actor in the industry. The organization also plans to expand the Talents 4 Startups program by offering 100 scholarships and has gained the trust of Orange, which entrusted Digital Africa with managing 500 million euros within the Fuzé framework.
Digital Africa firmly believes that fostering effective cooperation between institutions, funding sources, skill experts, research institutions, and startups is pivotal to the emergence of African tech champions. By creating an environment conducive to innovation and business growth, Digital Africa draws inspiration from the success of Silicon Valley, where substantial investments have propelled private initiatives and innovation. With a data-driven approach, Digital Africa supports startups that utilize technology for the real economy, with a focus on societal ambitions. The organization is actively developing a robust data infrastructure to measure the impact of its funded startups on improving people’s lives.
Digital Africa’s performance measures encompass financial and social perspectives, aligning with its core values. By tailoring its support to meet the specific needs of entrepreneurs, Digital Africa continues to foster sustainable development and unlock Africa’s digital potential.
As Digital Africa embarks on the next phase of its journey, it remains committed to transforming Africa through technology, working towards a brighter future for the continent and its people.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
Digital Africa, a leading organization fostering technological advancement and innovation in Africa, is thrilled to announce investment in Ivorian startup Fatala Digital House. This strategic collaboration aims to accelerate digital transformation for European and African enterprises, leveraging primarily African-based talents. Digital Africa proudly supports Fatala Digital House in its ambitious endeavors.
Fatala Digital House is a dynamic digital services company that guides European and African businesses through their digital transformation journey. With a strong focus on Africa, Fatala Digital House harnesses the power of local expertise to drive innovation and technological growth. This investment marks Digital Africa’s first venture in Côte d’Ivoire and holds promising prospects for future investment opportunities within the region.
Isadora Bigourdan, acting CEO of Digital Africa,
Expressing her enthusiasm at the signing ceremony, Isadora Bigourdan, acting CEO of Digital Africa, stated, “Digital Africa takes immense pride in supporting Fatala, a startup poised to become a key player in the Industry 4.0 landscape. Moreover, Fatala’s presence in Côte d’Ivoire sets the stage for numerous investment prospects, and we hope to pave the way for further opportunities in the region.”
The strategic partnership with Fatala Digital House is a testament to Digital Africa’s unwavering commitment to fostering innovation and development within the African startup ecosystem. Digital Africa firmly believes in Africa’s immense potential to become a global technological hub and takes great pride in contributing to this upward momentum.
With this investment, Digital Africa continues to demonstrate its dedication to nurturing the growth of African startups and supporting their transformational journeys. By investing in cutting-edge initiatives like Fatala Digital House, Digital Africa aims to stimulate innovation, empower local talent, and propel Africa’s digital landscape forward.
Digital Africa is a leading organization dedicated to accelerating Africa’s digital transformation. By providing investment, mentorship, and resources to promising startups, Digital Africa aims to foster innovation, drive economic growth, and position Africa as a global technology hub.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard
Since 2018, the Digital Africa programme has helped African startups. It just introduced a new early-stage business investment programme called Fuzé. In this interview, Isadora Bigourdan emphasised the program’s whole journey.
French President Emmanuel Macron committed 65 million euros to African companies in 2018 as part of the Digital Africa programme. Can you recall your objectives, challenges, and overall experience so far?
The goal of Digital Africa, which made its debut at Vivatech 2018, is to increase the capacity of African digital entrepreneurs to design and implement disruptive technologies at scale to benefit the real economy. After becoming a Proparco subsidiary in June 2022, Digital Africa is now the only French company in charge of assisting digital start-ups on the continent with non-financial, financial, and advocacy issues, from conception to scaling.
A comprehensive continuum of offerings to support entrepreneurs has been organised by Digital Africa around three primary areas of intervention based on a detailed diagnostic of the requirements of entrepreneurs on the ground.
First, in terms of skills, we support digital companies with significant impact potential by enhancing the team members’ abilities as well as the founders’, particularly by facilitating access to a talent pool with the skills they need.
Then, on the financial front, by mobilising resources and facilitating access to capital in Africa and beyond to guarantee the expansion of African technological advances.
Finally, through funding research projects that focus on particular, “Africa centric,” challenges, Digital Africa supports “Made in Africa” public policies that are beneficial to creative digital businesses in Africa. We are now unique in the African digital ecosystem in our ability to engage all pertinent levers, always working closely with a network of partners dedicated to the continent’s ecosystems.
Since 2020, we have started a number of initiatives that show our commitment to providing flexible solutions that can be quickly tailored to the demands of business owners. More than 10 firms have benefited from direct investment made in conjunction with Proparco, which has made many investments in VC funds. 11 startups were able to get a quick line of credit through the Bridge programme to help them with cash flow issues. 280 young people have been taught and put in start-ups through our Talent4StartUp scholarship programme, which aims to address the issue of young talent’s employability by educating them in the skills that start-ups on the continent value.
Our new Fuzé project, which we revealed a few weeks ago, aims to make it possible for startups operating in French-speaking Africa to launch their business and concentrate on their development efforts through tickets priced between €20,000 and €50,000.
We are providing agritech players with the chance to collaborate to share and organise data through our Data 4 Digital Africa pilot initiative, a data-centric organisation that allows access to open data for our community. To promote African tech changemakers, we also created the Resilient Digital Africa media. Finally, the Africa Next network enabled more than 60 businesses to present themselves in front of 100 investors seeking for business prospects, leading to the funding of 12 of them.
The Fuzé fund, which was just established, is intended for startups that are just getting started. What are the specific numbers required of them, and what requirements must they meet?
In the form of ideation tickets for €20K, follow-on tickets worth €30K, and cumulative tickets worth €50K, Fuzé has an envelope with €6.5 million deployed. The goal is to be able to finance as many companies in French-speaking Africa as possible and to do so indefinitely as long as these startups are expanding. We test a first ideation ticket at launch under the conditions that a startup is first incorporated, i.e. legally constituted, that one of the co-founders is a national of one of the covered countries, that the startup operates in one of the Francophone African countries, and that it has a technological solution.
We give priority to startups with established support or financing structures out of a sense of community and a desire to help them become anchored in their ecosystem.
An entrepreneur is not opposed to the idea of receiving the maximum amount of money, regardless of the stage of growth of their firm. However, Fuzé does not offer more than 50,000 euros for each project. Why is there a cap?
It is not a limit. This is done to fulfil a particular requirement at a particular point in the startup’s development. Through other initiatives, Digital Africa will continue to assist businesses in later phases of development. For instance, in 2020 we launched Bridge Fund by Digital Africa in collaboration with Proparco, which offers bridge financing with amounts ranging from €200,000 to €600,000, or we collaborated with BPI France on Africa Next, which gathers a community of investors ready to invest in startups looking to raise between €1m and €10m. The concept behind Fuzé is to initially address the start-individual up’s finance needs and then, as the business grows, to integrate it into a continuum with the right tools.
Startups from Rwanda, Morocco, Senegal, the Ivory Coast, and Tunisia are welcome at Fuzé. What nations will follow when?
We are in a launch phase. We are starting with these countries but the objective is to be able to quickly scale up and target, from the beginning of next year, all 25 French-speaking African countries.
How has Fuzé been received by entrepreneurs and the ecosystem so far and what do you think its impact will be by 2025?
Already in the first month following the debut, we have seen a sizable influx of applications from both startups and support organisations. Our first agreement with the Senegalese startup Neolean was successfully finalised, and we have already inked other agreements. Thus, we are carrying out our intention to implement the system swiftly. By 2025, we pledge to support more than 100 companies, and with the assistance of our network of ecosystem partners, we’re motivated to find these gold nuggets.
Digital Africa African startups Digital Africa African startups
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Fuzé, an investment facility by Digital Africa, is inviting early-stage startups operating in Francophone African countries to apply for up to EUR50,000 (US$48,000) in equity funding from its fund.
The Digital Africa initiative, a French government-backed organisation assisting African tech startups, was launched by President Emmanuel Macron in 2018.
Through Fuzé, which is currently open to startups from Rwanda, Morocco, Senegal, Ivory Coast and Tunisia but will soon be available across the whole of Francophone Africa, startups can access EUR20,000 (US$19,000) in funding followed by a EUR30,000 (US$29,000) SAFE investment.
The facility is dedicated to entrepreneurs who are preparing or have just launched their tech startup, with startups required to be less than 18 months old. They must also be founded or co-founded by at least one citizen of French-speaking African countries, have a tech component in their product or business model, and have operations in a French-speaking African country.
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Through its Fuze programme, Digital Africa is funding €50,000 for early-stage Francophone startups.
The €6.5 million programme attempts to invest in businesses in 25 nations, including Morocco, Rwanda, Senegal, Tunisia, and Cote d’Ivoire, in the early stages of ideation and prototype development.
The Fuze programme anticipates giving African business owners a first-step funding of €20,000 and a follow-up funding of €30,000.
The programme only accepts applications from African enterprises that were co-founded or established by at least one citizen of an African nation that speaks French.
The startup must also have been founded recently — less than 18 months ago — and operate in the Francophone Africa region with a technologically-driven business plan.
The Digital Africa initiative, started in 2018 by French President Emmanuel Macron, provides funding for the Fuze programme.
In order to build regional capacities and increase entrepreneurial funding in the area, the initiative aims to link digital entrepreneurs from Francophone Africa with worldwide partners.
One of the many regional and international initiatives undertaken across the continent to create and support a transnational startup ecosystem that could be crucial in fostering innovation to tackle urgent issues like water scarcity and food hunger is Digital Africa.
African companies raised $3.5 billion in the first half of 2022, more than twice the amount seen in the same period the previous year. By the end of the year, venture capital agreements worth $7 billion are expected to be closed in the continental ecosystem, according to experts.
African startups continue to raise money for their creative solutions by taking part in internationally funded programmes to learn from other experiences, despite the lingering effects of the pandemic, the impending global recession, in addition to structural issues related to lack of training and local funding.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
As part of its 2022–2025 roadmap, Digital Africa will support 200 African startups at different stages of their growth with a wide range of offers at their disposal. Thanks to a joint and sustainable mobilization with Proparco, new investment and support mechanisms are implemented to support tech startups “Made in Africa”.
THE FUND FUZÉ, A NEW FINANCING MODEL ADAPTED FOR START-UPS IN FRENCH SPEAKING AFRICA
Convinced that digital innovations have a uniquely transformative impact across all sectors of the economy and are a driver of change for the continent, Digital Africa will launch the Fuzé fund in September. This model perfectly addresses the concerns of early-stage African tech start-ups, with a tiered funding solution that is conditional on the company’s progress. This approach focuses on the success of entrepreneurs and aims to create the leverage needed to get through the early stages, which are otherwise difficult to achieve without support.
Thanks to this unique mechanism on the continent, African Tech startups whose needs in the seed phase range between €20,000 and €30,000 can now aspire to find funding from Digital Africa, while seeking capital from other investors.
This program FUZE and more globally the rapprochement between Digital Africa and Proparco allows us to offer a unique continuum of financing solutions for African startups, from ideation to scale-up. Proparco has been supporting the financing of African startups for several years, either directly or through support to the venture capital ecosystem, and Digital Africa is strengthening this offer to provide even greater support to startups at the ideation stage.
Stéphan-Eloise Gras, Chief Executive Officer at Digital Africa: “Seed is one of the most exciting but also the most difficult moments of the entrepreneurial journey in Africa. We are joining forces with Proparco to provide concrete solutions at all stages and in all aspects of a start-up’s life. Through technology, African talent can show the world that Made in Africa products and innovations have the potential to become global benchmarks for sustainable growth.”
Françoise Lombard, Chief Executive Officer at Proparco: “By joining Proparco, Digital Africa is strengthening AFD Group’s commitment to entrepreneurship. Our challenge is to offer entrepreneurs comprehensive support at all stages of their growth. With Digital Africa, we are now able to support entrepreneurs from the start-up phase and throughout their growth. This is a unique offer.”
BRIDGE FUND BY DIGITAL AFRICA IS A GREAT SUCCESS
To meet the challenges facing startups today, Digital Africa launched the “Bridge Fund BY Digital Africa” with Proparco, which offers initial financing capacity to “Made In Africa” stratups in the seed phase. The scheme has been a huge success: 257 applications received from 40 African countries; 11 startups financed for a total of €3.88m in just a few months.
A few examples illustrate Digital Africa’s strategy to multiply its initiatives in order to build a virtuous ecosystem and identify future unicorns.
6.2 million raised by ANKA, an Ivorian e-commerce start-up dedicated to African designers.
31 million in a funding round raised by MAX, a Nigerian sustainable mobility start-up.
28 millions raised by Poa Internet, a Kenyan start-up, successfully raising a total of $36 million to date.
Innovation companies, whose growth has been hampered by the impact of the global health crisis, have been able to draw on this five million euro fund, which addresses their financing issues, strengthens their attractiveness and makes their approach more credible.
This first financing capacity with the help of Digital Africa on tickets ranging from €175,000 to €600,000 consolidates the growth of startups able to raise funds to close their development phase and move on to industrialization. By creating a reassuring environment, Digital Africa accelerates the maturity of startups and strengthens the confidence of their African and global investors, to increase the scale of projects.
Stéphan-Eloise Gras, CEO at Digital Africa : “We designed Bridge fund to provide responsiveness to African start-ups’ needs in the time of a global pandemic. But we also saw its utility beyond. Our intuition was that more can be done to address the funding gap, especially with debt mechanisms. There is an opportunity now for Digital Africa and its European partners to scale-up and accelerate innovation “made in Africa”
Françoise Lombard, CEO at Proparco: “More than a year and a half after its launch, the success of the Bridge Fund confirms that it concretely meets the needs of entrepreneurs on the African continent. Thanks to the complementary approach proposed by Digital Africa and Proparco, Bridge Fund is a real tool for accelerating the growth of startups and responding to the increased financing difficulties linked to the COVID-19 crisis. With Digital Africa, we share the same ambition: to be alongside entrepreneurs!”
TRAINING IN DIGITAL SKILLS ACCESSIBLE TO ALL TO IMPROVE THE EMPLOYMENT OF START-UPS IN FRENCH AND ENGLISH-SPEAKING AFRICA
Currently, 280 young people from the continent benefit from training provided via a network of local partners — coding schools and bootcamp present in 11 countries — entirely financed by Digital Africa and its partners, for the professions of data analyst, IT developer and digital marketing.
The 11,000 applications received demonstrate the appetite of all young people for the tech industry. Digital Africa has been fully involved in meeting these expectations and will continue to be involved in meeting the requirements of this new economy, which is a great opportunity for African start-ups.
Stéphan-Eloise Gras, Chief executive at Digital Africa : “Tech Made in Africa is not only about money, it is also and above all about the skills needed to help create new solutions to the problems of citizens on the continent, and elsewhere. Thanks to Talent4Startups, we are showing our ability to listen to the needs of African tech entrepreneurs and to respond to them via a network of partners structured and united around the skills needs of the ecosystem.”
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The battle to save the soul of Digital Africa Venture Capital Fund, a venture capital fund sponsored by French President Emmanuel Macro in support of African startups made up of about 20 fund managers and which had also announced it had increased its fund size from $76 million to $152 million, rages on. Kizito Okechukwu, the association’s interim president, has declared his resignation just days after a group of the fund’s executive committee released an open letter re-affirming life to the troubled fund.
Kizito Okechukwu
“But we had differences on the implementation of this strategy and after careful consideration, I think my resignation is the right thing to do,” Okechukwu said.
The Nigerian founder and executive director of the 22 On Sloane incubator based in South Africa, will step down on May 2, 2021. The reason given is linked to the French Development Agency (AFD).
Okechukwu hopes that by stepping down, he would force AFD to make the systemic changes needed to achieve Digital Africa’s objectives. Nonetheless, the Nigerian claims that he and the Agency were in complete agreement about the plan.
Obviously, his situation was no better than that of his predecessor, Karim Sy who also criticized AFD’s working practices when he left.
Why Is The Crisis Significant For The African Startup Ecosystem?
The direction the crisis goes is important because some of the continent’s venture capital firms and accelerators catering to startups on the continent are plugged into the Digital Africa Venture Capital Fund.
Set up late 2019, the Digital Africa Venture Capital Fund aims to provide initial funding to Africa’s tech startups. Between 10 to 20 fund managers are members of the Digital Africa Investment Club.
The fund targets tech startups directly via 4 programs managed by Greentec Africa Foundation, African Business Angel Network, Investisseurs & Partenaires and MercyCorps Ventures.
The fund also targets incubators and accelerators via 2 programs managed by Bond’Innov and AfriLabs.
Before now, the fund is led by Nigerian Kizito Okechukwu who is its Vice-President, and outgoing interim president, after the resignation in July, 2020 of Franco-Senegalese-Malian, Karim Sy, who is the founder of Jokkolabs.
To-date, Digital Africa is touted to represent a bright future to support Emmanuel Macron’s new-deal project for Africa’s digital economy. The French Development Agency (AFD), which is a member of it, even managed to mobilize some 130 million euros for equity investments in African startups.
Digital Africa fund crisis Digital Africa fund crisis
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
A new fund for African startups is here! Digital Africa and Proparco have officially launched the Bridge Fund. The fund is a bridge investment fund initiated to help African startups continue their development in the face of the hard-to-overcome challenges brought on by the current pandemic.
Stephan-Eloïse Gras, Executive Director of Digital Africa
“We believe in this new fund which is a very innovative financial tool although it is still experimental for some players. It will be deployed by Proparco and we are delighted to launch it, ”said Stephan-Eloïse Gras, Executive Director of Digital Africa. The Bridge Fund will be used for co-investment, lending and fundraising.
Here Is What You Need To Know
The fund represents 5 million euros ($6.5 million) to invest in young African startups.
They will receive tickets worth between 200,000 and 600,000 euros. This is done in a quick and easy process, which includes an evaluation of candidates in less than two months.
The investors of the Bridge fund are also subject to the condition: to be known by Proparco and to have already invested a minimum of 50 million in two African startups.
To be eligible for the Bridge Fund, innovative tech companies must prove that they have been in existence for at least 18 months and have already received funds from an investor or a recognized structure. They will also have to achieve 75% of their turnover, a minimum of 200,000 euros, on the continent or have at least half of their teams work there.
The startups targeted are those operating in sectors such as agriculture, energy, education, health, financial inclusion, logistics, green mobility, among others.
“In addition, the targeted companies must have already demonstrated that their business model works and have successfully gone through a first round of fundraising. The approach we have chosen therefore really consists in supporting growth, or, in other terms, scaling up projects” explained Johann Choux, Head of Venture Capital Investments at Proparco, during the presentation.
Being fully aware of the difficulties confronting high-potential startups, Digital Africa and Proparco have been working on a simplified and rapid process, both for reviewing applications, which will take no more than 8 weeks, and for formalizing contracts and allocating funds. The first step is a questionnaire to enable interested companies to check whether they are eligible or not, which is available on the website: https://bridge.digital-africa.co (While on the site, Click on “EN”, if you are English-speaking; or “FR” if you are French-speaking.)
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
