The African Development Bank (AfDB) announced, this Thursday, February 16 in a press release, its equity investment of 10.5 million US dollars in the Fund for technology and innovation in developing countries, TIDE Africa.
The objective of this project dubbed « TLCOM’s Tide Africa II Fund » is to support the value chain of venture capital financing, in particular startups in the pre-seed and seed stage (a segment that will benefit from 75% of fund assets).
This will involve providing long-term financing in the form of equity investments through preferred shares to startups at all stages of their growth, but especially starting with seed capital.
The statement highlights that the fund will cover countries in sub-Saharan Africa (starting with Nigeria and Kenya) as well as South Africa and Egypt. The priority given to these countries is justified by the fact that these markets are the most technologically advanced on the continent, thus offering enormous opportunities, from the seed phase to the growth phase.
In terms of expected results, it is stated that TIDE II will create approximately 4,384 jobs at the sub-project level and generate $904 million in tax revenue for the benefit of African governments over the period 2023 to 2032.
The fund is also expected to generate additional benefits for households, such as increased access to goods and services in these sectors, with potential positive impacts on consumers’ quality of life.
The number of additional jobs that should go to women at the level of the beneficiary companies is estimated at 1,438, which corresponds to 32.8% of the total creation of additional jobs.
The press release specifies that the beneficiary of the equity investment is the TIDE Africa Fund, managed by TLcom Capital LLP, a limited liability company incorporated in the United Kingdom.
The AfDB recalls that the African continent is home to a rapidly growing “tech market”, with many startups operating as financial technology companies or offering technology-based solutions to other “real” sectors. Investing in venture capital funds such as TIDE Africa II will support more businesses that positively impact people’s lives and drive optimization and growth for the benefit of consumers, suppliers and markets, argues -She.
By OMA Newsletter N° 1050 of 16/02/2023
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
