Kizito Okechukwu - Afrikan Heroes

Digital Africa Crisis Deepens As Its President Resigns. What You Need To Know

April 30, 2021

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, the association's interim president — 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

Crisis: An Open Letter From The Digital Africa Executive Team

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

Digital Africa Secures $152 Million For Investment In African Startups

October 17, 2020

Good news for African startups. Digital Africa has successfully increased its fund size from $76 million to $152 million for investment in African startups. This increase came after a meeting between Kizito Okechukwu, the new vice-president of Digital Africa and various stakeholders in Paris.

Kizito Okechukwu, vice-president of Digital Africa

“Digital Africa plans to launch its new strategy towards the end of the year and will work closely with various key partners in the African ecosystem to ensure that start-ups have the capacity to start, grow and become successful global brands, ” said Okechukwu.

Here Is What You Need To Know

In the French capital, Okechukwu was able to meet with the French minister in charge of ICT and Remy Rioux, the president of the French Development Agency. The latter is also at the initiative of Digital Africa.
With this sum, Digital Africa hopes to accomplish its mission which includes the development of skills, knowledge communities, the financing of projects and businesses (debt and equity), as well as to facilitate the emergence of a regulatory environment conducive to innovation in Africa, technical assistance, and ease market access for high impact African startups.

A Look At The Digital Africa Venture Capital Fund

Set up late 2019, the Digital Africa Venture Capital Fund aims to provide initial funding to Africa’s digital startups. Between 10 to 20 fund managers are members of the Digital Africa Investment Club.

The fund targets:

Digital startups directly

via 4 programs managed by Greentec Africa Foundation, African Business Angel Network, Investisseurs & Partenaires and MercyCorps Ventures. Eligibility criteria include:

Companies registered and based in Africa.
Companies offering an innovative digital product or service that contributes to one or more Sustainable Development Objectives.
Companies meeting the needs of an initial customer base and potential partners.
Presentation of a business model outlining growth prospects.
Employment of an experienced team with expertise in various fields.

Incubators and accelerators

via 2 programs managed by Bond’Innov and AfriLabs.

€15 million has also been allocated to Africa’s early stage digital startups through a network of partners in 45 countries across Africa. Finance ranging from €25 000 and €300 000 is available in the form of loans, interest-free loans, subsidies, etc., depending on the project and circumstances.

How To Access The Fund

Digital Africa venture fund is currently managed by the following venture capital firms and angel investment networks: Greentec Africa Foundation, African Business Angel Network, Investisseurs & Partenaires and MercyCorps Ventures, including through incubation programs managed by Bond’Innov and AfriLabs. All requests for funding may therefore be directed to them.