{"id":3253,"date":"2020-06-24T16:02:09","date_gmt":"2020-06-24T14:02:09","guid":{"rendered":"https:\/\/afd-chooseafrica-qa.cegedim.cloud\/?p=3253"},"modified":"2020-07-02T15:56:33","modified_gmt":"2020-07-02T13:56:33","slug":"digital-africa-fund-customized-support-for-african-start-ups-and-their-ecosystem","status":"publish","type":"post","link":"https:\/\/afd-chooseafrica-qa.cegedim.cloud\/en\/news\/digital-africa-fund-customized-support-for-african-start-ups-and-their-ecosystem\/","title":{"rendered":"Digital Africa Fund: Customized support for African start-ups and their ecosystem"},"content":{"rendered":"

Six months after its launch, the Digital Africa seed fund for the development of innovative entrepreneurship in Africa has got off to a promising start. A third of the envelope has already been invested to support digital start-ups, which have benefited from individual financial and technical assistance.<\/p>\n

The\u00a0Digital Africa seed fund<\/a> was launched in December 2019. Through this \u20ac15 million envelope with a 3-year disbursement period, Agence Fran\u00e7aise de D\u00e9veloppement (AFD) is supporting six programs to support and finance African digital start-ups in the seed stage.<\/p>\n

\u201cValidating a concept, recruiting a team, developing a technology, setting up\u2026 the seed phase is crucial to the future success of a company. It is risky, but attracts few investors\u201d, says Jean-Pierre Barral, Director of AFD\u2019s Energy and Digital Transitions Department. This is why 87% of African start-ups do not have access to any financing.<\/p>\n

Experts central to start-ups<\/strong><\/p>\n

Six months after the fund was set up, a third of the budget envelope has been invested to finance the implementation of programs and the follow-up of the first digital start-ups eligible for them. \u201cWe have contacted or been contacted by just over 500 start-ups in Africa\u201d, says Erik Yong, CEO and co-founder of\u00a0GreenTec<\/a>, one of the program operators supported by the Digital Africa seed Fund, \u201cWe are currently providing closer support to about twenty of them.\u201d \u00a0<\/em><\/p>\n

————————————————————————————————————————————<\/p>\n

For further reading:<\/strong>\u00a0Our web page on the Digital Africa seed fund<\/a><\/p>\n

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To date, these candidates have benefited from some 300 hours of expertise on the strategic, financial and operational aspects. Five of them have also obtained financing ranging between \u20ac20,000 and \u20ac50,000.<\/p>\n

This formula providing liquidity and experts who act as co-founders of the company at these early stages attracts start-ups. \u201cWe are the brain back-ups, specialists who help promising businesses grow. Some will manage to scale up and attract investors\u201d, says Maxime Bayen,\u00a0a venture builder\u00a0<\/em>at GreenTec, who shares his expertise with six companies.<\/p>\n

Supporting an innovative ecosystem <\/strong><\/p>\n

In addition to directly supporting start-ups, the Digital Africa seed fund also seeks to develop and structure the African ecosystem of hubs that assist them. This is why AFD has partnered with the innovative project incubator Bond\u2019Innov\u00a0<\/a>which, through the\u00a0Afric\u2019Innov<\/a> program, has just opened an office in Dakar.<\/p>\n

\u201cOur African partners had been urging us to transfer our expertise locally for a long time\u201d, says Ninon Duval, Director of Bond\u2019Innov, \u201cThe opening of an office in Senegal has strengthened the Afric\u2019Innov network and professionalized the support structures for innovative entrepreneurship.\u201d \u00a0<\/em><\/p>\n

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For further reading:<\/strong>\u00a0How to benefit from programs supported by the Digital Africa\u00a0seed fund<\/a><\/p>\n

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\u201cThe launch of our activities was disrupted by Covid-19\u201d, explains Daouda Thiaw, Executive Director of Afric\u2019Innov in Dakar, \u201cBut this crisis has not stopped us from being very responsive and offering webinars to the 75 members of our community.\u201d Despite the health crisis, the scheme supported by the seed fund has managed to remain responsive and adapt to the needs of start-ups and their ecosystem.<\/p>\n

\u201cWhen my company was hit hard by the consequences of the epidemic, I was able to benefit from an interest-free loan of \u20ac25,000 euros which allowed me to maintain my activity\u201d, says Alvine Choupo, co-founder of\u00a0VuSur<\/a>, a Cameroonian start-up that promotes and facilitates on-line buying of African and foreign products.<\/p>\n

Webinar learning week <\/strong><\/p>\n

As part of the program implemented by\u00a0Afrilabs<\/a>, another partner of AFD, the strengthening of support structures has also led to a learning week<\/a>, a virtual event gathering 670 participants.\u00a0\u201cAt AFD, we are extremely satisfied with the promising start of the Digital Africa fund\u201d, says Jean Millerat, Director of AFD\u2019s Digital Division (NUM), \u201cFor the next phase, we hope there will be a wave of high-quality promising projects that will promote innovation.\u201d \u00a0\u00a0<\/em><\/p>\n

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For further reading:\u00a0<\/strong>Appropriate funding to support African digital start-ups and their ecosystems<\/a><\/p>\n

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From now until 2022, this fund will also be fulfilling the French President\u2019s promise to support African start-ups and their projects for the assistance they can provide to local communities in terms of facilitating their access to basic services, such as information, training, work and education. \u00a0This Ivorian start-up provides technology for plastic waste recycling via<\/em> a web, mobile and text message application.<\/p>\n

\n
\n
\"Yaya

Yaya Kone, co-founder of COLIBA<\/p><\/div>\n<\/div>\n

 <\/p>\n

\u00a0\u201cThe financial and technical assistance managed by the Digital Africa seed fund is helping\u00a0COLIBA<\/a>\u00a0scale up. Our growth is allowing us to extend waste collection to new neighborhoods in Abidjan. Our start-up is stronger and is recognized in the network of innovative African companies. This reputation attracts new investors and has allowed us to multiply our capital by five. Through the training programs supported by the seed fund, our employees are building their skills in fields as varied as finance and marketing.\u201d<\/em><\/p>\n

 <\/p>\n<\/div>\n

 <\/p>\n

 <\/p>\n

Sumundi<\/a>, a Ghanaian start-up, provides software solutions for small traders to help them manage their stock and accounting.<\/p>\n

\n
\"Awura

Awura Abena Amponash, Director and co-founder of Sumundi<\/p><\/div>\n<\/div>\n

 <\/p>\n

\u201cThe development of our business has been accelerated by the technical assistance we have benefited from through the Digital Africa seed fund. Our company is eligible for the venture building program implemented by GreenTec and is helped by this operator\u2019s experts. For the next three years, we will be developing and structuring Sumundi together. It\u2019s very reassuring and rewarding to be surrounded by professionals and to be able to discuss any doubts we have with them.\u201d<\/em><\/p>\n

 <\/p>\n

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The\u00a0Digital Africa seed fund was launched in December… View Article<\/a>","protected":false},"author":18,"featured_media":3243,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[405,127,377,128],"pays":[129],"offres":[],"class_list":["post-3253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-financement-des-pme-en","tag-fonds-dinvestissement-en","tag-sme-financing","tag-start-up-et-numerique-en","pays-afrique-en"],"acf":[],"yoast_head":"\nDigital Africa Fund: Customized support for African start-ups and their ecosystem - Choose Africa<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/afd-chooseafrica-qa.cegedim.cloud\/en\/news\/digital-africa-fund-customized-support-for-african-start-ups-and-their-ecosystem\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Digital Africa Fund: Customized support for African start-ups and their ecosystem - Choose Africa\" \/>\n<meta property=\"og:description\" content=\"Six months after its launch, the Digital Africa seed fund for the development of innovative entrepreneurship in Africa has got off to a promising start. 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