AfDB Injects $10.5 Million in Seedstars Africa to Boost African Businesses

The African Development Bank (AfDB) has said it will invest $10.50 million in Seedstars Africa Ventures S.L.P., a venture capital fund to empower the fund to invest in innovative African businesses demonstrating robust growth potential.

AfDB’S investment comprises $7 million from its regular resources and an additional $3.5 million from the European Union’s Boost Africa program.

This financial injection is expected to enable Seedstars Africa Ventures (SAV) to raise more funds, broaden its footprint in Africa, and attract further investors.

“The fund is projected to create 9,000 full-time jobs, with women filling 50% of these roles, and is expected to have a significant economic impact,” said AfDB in a statement.

SAV is an early-stage venture capital fund that invests in high-growth companies operating across Sub-Saharan Africa. The fund primarily targets businesses that show strong potential, generate income, and address significant market challenges.

While its focus is on Sub-Saharan Africa, particularly underrepresented markets and French-speaking countries like Senegal, Côte d’Ivoire, Benin, and Cameroon, it also invests in Ghana, Uganda, and Tanzania.

With a capital of $75 million, SAV targets businesses in their start-up and launch phases that are addressing key market constraints.

The fund typically starts with an initial investment around the EUR 250,000 mark, followed by additional capital injections of up to €5 million to support their growth.

SAV’s investment focus includes financial inclusion and technologies that support businesses (fintech and insurtech), retail sales and logistics platforms targeting the online and mobile consumer market, health-related technologies, pre-paid, off-grid energy, and the adoption of technology in businesses, especially in the food-processing industry and value chains.

The objectives of the fund align with those of Boost Africa, which aims to invest in innovative start-ups demonstrating strong growth and positive social impact.