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Fresh off a $30 million capital injection from EIB Global, Seedstars Africa has landed another sizable vote of confidence with a $10.5 million commitment from the African Development Bank (AfDB).
This latest tranche, part of the Seedstars Africa Ventures I fund, further fuels the firm’s mission to support innovative businesses with high growth potential across the continent.
The AfDB’s investment comprises $7 million from its own resources and $3.5 million from the European Union Boost Africa program. This commitment will bolster Seedstars Africa Ventures’ ability to attract further investment, expanding its pool of resources for supporting African startups. This will also aid the firm’s expansion across Africa, broadening its footprint, and offering valuable support to promising entrepreneurs in more corners of the continent.
As an early-stage venture capital fund, Seedstars Africa Ventures specialises in supporting high-growth companies throughout Sub-Saharan Africa. It prioritises businesses that demonstrate strong potential for success and sustainable growth, generate substantial revenue, actively contribute to the African economy, offer solutions to key market challenges, and foster positive social impact.
Seedstars Africa Ventures’ focus extends beyond traditional investment hubs, with a notable emphasis on French-speaking countries like Senegal, Côte d’Ivoire, Benin, and Cameroon. The fund also maintains active investments in Ghana, Uganda, and Tanzania.
Operating with a total capacity of $75 million, Seedstars Africa Ventures targets the early-stage and launch phases of businesses addressing critical market needs. Seed investments typically hover around €250,000, followed by subsequent capital injections of up to €5 million to fuel growth.
The fund’s core areas of interest include financial inclusion, empowering businesses and individuals through fintech and insurtech solutions; retail and logistics, enabling online and mobile commerce platforms to reach more consumers; healthtech, where the firm Invests in technologies that improve healthcare access and delivery, off-grid energy, providing sustainable power solutions in underserved areas, and technology adoption, facilitating technology integration across various industries, particularly food processing and value chains.
Seedstars Africa Ventures’ projected impact aims to create 9,000 full-time jobs, half of which will be made up of women. Additionally, the fund is expected to generate significant economic benefits for the continent.
This investment aligns with the objectives of the Boost Africa program, which targets high-growth, socially impactful startups. It also bolsters the AfDB’s broader strategy of linking entrepreneurship, investment, and economic growth to poverty reduction and sustainable development. Furthermore, the investment supports the Bank’s High 5 priorities by backing startups operating in key sectors like agriculture, health, industrialisation, and off-grid energy. Ultimately, this collaboration contributes to regional integration and improving the lives of people across Africa.