The board of directors of the African Development Bank Group has approved a €10.5 million equity investment pool for the Janngo Start-up Fund. This is the first closing of a pan-African digital start-up fund.
The African Development Bank (AfDB) contributed €7 million, while the European Union and the Organization of African, Caribbean and Pacific States each contributed €3.5 million.
The Janngo Start-up Fund, managed by Janngo Capital, develops, grows and invests in technology start-ups with proven business models and significant social impact. Agribusiness, financial services, energy, education and healthcare are among its priority sectors, notably in Francophone West Africa.
According to Stefan Nalletamby, the AfDB’s director for financial sector development, the fund may help convert a traditional company environment into a vibrant, 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 via a statement.
The pooled investment will benefit the Boost Africa Program, a collaboration between the contributing partners and the European Investment Bank to assist investment funds that target early-stage innovative enterprises across Sub-Saharan Africa.
The fund aims to improve Africans’ quality of life by adopting technology-enabled business models for small and medium businesses that cater to underserved populations.
Story originally published via FoodForAfrika.com