Swiss DFI invests in Novastar Ventures Africa Fund II

The Swiss Investment Fund for Emerging Markets (SIFEM) has revealed an $8 million investment in the Novastar Ventures Africa Fund II, an impact fund, targeting venture capital (VC) investments in innovative early-stage businesses in East and West Africa.

The Novastar Ventures Africa Fund II recently announced a final close at $108 million.

The fund will focus on developing fully commercial, profitable business models by investing in companies led by entrepreneurs with the capability and ambition to transform markets for low-income consumers. These will be businesses which either provide basic affordable goods and services for mass, low-income markets, or source from the mass low-income markets at scale. The primary geographic focus will be on Kenya and Nigeria with a secondary focus on Ethiopia, Tanzania, Uganda, Rwanda, and Ghana.

"While there has been much interest in African VC, the ecosystem is still nascent, and significantly more investment is required to support the establishment of this market," said SIFEM in a statement.

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