AfDB Injects $10.5 Million into Seedstars Africa

The African Development Bank (AfDB) has committed $10.5 million in Seedstars Africa Ventures, a venture capital fund targeting high-potential companies in Sub-Saharan Africa.^[1] The funds will go toward its first pan-African venture capital fund.  

The decision entails a contribution of $7 million from the bank's ordinary resources, coupled with an additional $3.5 million from the European Union Boost Africa program. The investment will help Seedstars Africa Ventures expand its presence, secure funds, and attract further investments for innovative startups poised for substantial growth.

Seedstars Africa Ventures operates as an early-stage venture capital fund that focuses on high-growth companies in Sub-Saharan Africa. The Paris and Nairobi-based VC fund strategically targets startups during their inception and launch phases. Its geographical focus includes French-speaking countries such as Senegal, Côte d’Ivoire, Benin, and Cameroon, along with Ghana, Uganda, and Tanzania. Seedstars' main areas of focus include fintech, insurtech, retail sales, logistics platforms, health technologies, pre-paid off-grid energy, and technology adoption in the food-processing industry and value chains.

Seedstars Africa Ventures plans to initiate investments at approximately $272,863, followed by subsequent capital injections of $5.46 million to foster the growth of selected businesses.

Earlier this month, Seedstars Africa secured $30 million from EIB Global, an arm of the European Investment Bank (EIB). It previously secured $8 million from French private equity firm LBO France, the fund's anchor investor. Seedstars aims to raise $80-100 million in total for the fund, which will back seed and Series A startups, as well as follow-on funding up to Series B.