By Gitahi Ngunyi
Africa tech innovations got a boost after Partech Africa Fund have received a big boost after the African Development Bank approved, Thursday, a €7 million (US$8 million) equity investment into Partech Africa Fund, fronted by global tech focused private equity firm, Partech Partners.
Partech Africa Fund investments are focused on financial inclusion such as fintech, insurtech, pay as you go, and off-grid energy. The fund also focuses on e-commerce and mobile commerce as well as tech adoption in enterprises especially in industry, education, logistics and transport, health, and agriculture value chain applications.
AfDB said papers presented to its Board showed the Fund has successfully completed its first close in January 2018 with €71 million and is targeting a total fund size of at least €100 million through a 2nd round expected to be closed by October/November 2018.
Under the framework of the Boost Africa Program, the Bank will provide €7 million equity investment in the 2nd close.
The contributions from both the African Development Bank and the European Investment Bank form part of the Boost Africa Programme, which assists Partech in its fund raising. The Bank is expected to have a seat in the Advisory Board of the Fund.
“The fund’s focus aligns well with the Boost Africa objectives to invest in high growth innovative start-ups with a strong social / Base of the Pyramid outreach and impact,” said AfDB in a statement announcing the investment.
Partech is a Venture Capital Fund dedicated to investing in tech-enabled, innovative, high growth potential and talented entrepreneurs operating early stage companies and applying relevant technologies to address fundamental market constraints with potential to scale across the continent.
With offices in Dakar and Nairobi the Fund is targeting nine Sub-Saharan African countries (South Africa, Ghana, Nigeria, Ivory Coast, Cameroun, Senegal, Tanzania, Kenya and Uganda).