Bornheim (Germany), December 2019.
The GreenTec Capital Africa Foundation (GCAF) is very pleased to report that the Agence Francaise De Development (AFD) has selected the Foundation as one of the implementing partners in a 15 million Euro initiative to improve funding opportunities for the African start-up ecosystem. As one of the selected implementing partners, GCAF will receive 3 Million Euro to further support the Foundation’s in promoting venture building. A portion of the funds are designated for the establishment of an interest-free loan book for African start-ups.
The initiative was announced by AFD Project Manager Isadora Bigourdan at the AFD’s Social & Inclusive Business Camp in Marseille earlier this December. The GCAF, as well as, ABAN, Afrilabs, Mercy Corps, Bond’innov and Terranga Capital were selected as local implementing partners to address funding and support gaps for the large and growing number of early-stage African ventures.
The initiative aims to address the lack of funding options for African start-ups, particularly focusing on the large and growing early-stage segment. The initiative’s implementing partners were selected based on their market experience and capacity to address the needs of start-ups early in their business journeys. Building on the momentum generated by the AFD’s Digital Africa program, President Macron’s initiative to focus on start-ups developing innovative and scalable digital solutions in Africa, the funding will also support the promotion of ecosystem enablers and the participation of more investors. The Initiative will direct investments into start-ups through the selected partners using several vehicles including venture building, equity, and repayable advances. The initiative therefore leverages and strengthens existing support actors as a part of the effort to address the early-stage funding gap for ventures that require sums between €15,000 and €300,000 but are not mature enough to attract funds through conventional channels and investments.
By selecting GCAF as a partner, the AFD recognizes the unique value-adding potential of venture building as investment in Africa. The move will serve to further democratize investment in the African entrepreneurial ecosystem by providing direct support through venture building as well as a much-needed interest-free loan instrument for small amounts. By directly investing through GreenTec’s venture building model, the Foundation’s actions aim to greatly improve the efficiency of small-ticket investments and the potential success of co-invested ventures. Thus, the funding will further support GCAF’s mission to support and promote the African entrepreneurial ecosystem.
Following a successful first year of operations, GCAF plans to leverage the AFD partnership to further build on its mission to support, empower, and promote investment in the African start-up ecosystem. In 2020, partnering with the AFD will allow GCAF to further amplify its impact on the African entrepreneurship ecosystem, to continue to bring fundamental value to African start-ups and founders, and transform interest in African entrepreneurship into active investment.
Funding Program Eligibility:
- Open to all start-ups in Sub Saharan Africa implementing digital solutions.
How to Apply:
About GCAF
Founded in 2018, the GreenTec Capital Africa Foundation is a non-profit organization that promotes the development of investment in African entrepreneurship with the goal of driving the creation of local economic and social added-value. With offices on both continents – Africa and Europe – the foundation aims at creating synergies between different stakeholders to mutual benefit. In order to achieve its goals, the GreenTec Capital Africa Foundation collaborates with partners in the entrepreneurship ecosystem, investors and SMEs as well as public and private institutions.
More information on: https://greentec-foundation.org/
About GreenTec Capital Partners:
GreenTec Capital Partners is a long-term investor founded in 2015 that invests in African start-ups and SMEs with a focus on combining social and environmental impact with financial success. GreenTec uses capacity building, process optimization and a diverse team of international experts to help start-ups and SMEs implement and adapt the latest technologies to their models so they can extend their value chains and have more impact locally. Their mandate is to maintain at least 75 percent impact focused enterprises and they aspire to grow 400 companies by 2023.
More information at https://greentec-capital.com
About Agence Francaise de Developpement (AFD)
The AFD is the French Development Agency, the ministry of the French government which participates in promoting and financing development throughout the world.