African Development Bank invests in tech start-up fund
The board of directors of the African Development Bank Group has approved an equity investment pool of €10.5 million toward the first close of the Janngo Start-Up Fund, a pan-African tech start-up fund.
The pooled funds comprise €7 million provided by the African Development Bank and a €3.5 million contribution by the European Union and the Organisation of African, Caribbean and Pacific States.
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. Its focus areas span agribusiness, financial services, energy, education, and healthcare, primarily in Francophone West Africa.
Stefan Nalletamby, the bank’s director for financial sector development, said the Janngo Fund can 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. 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.
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