Accra: The Board of Directors of the African Development Bank (AfDB) Group has sanctioned an investment of pound 6.5 million into the Saviu II fund, aiming to bolster tech start-ups during their seed phase and initial institutional fundraising, primarily in French-speaking Central and West Africa.
According to Ghana News Agency, the investment includes pound 4.5 million as equity and an additional pound 2 million as a first-loss hedging tranche on behalf of the European Commission, under the Boost Africa Programme. The initiative is designed to prioritize companies with a technological or digital focus.
Saviu II, the second investment initiative of Saviu Partners, is set to invest between pound 500,000 and pound 3 million in approximately 20 technology or tech-oriented B2B start-ups. These investments will target companies in the seed phase or those undergoing first institutional fundraising. The fund aims to allocate at least 60% of its commitments to French-speaking countries in West and Central Africa, including C´te d'Ivoire, Cameroon, Benin, Senegal, Togo, Burkina Faso, and Mali.
The fund also has provisions to co-invest in promising tech enterprises in East Africa, provided these companies possess a strong team and business model, and have strategies to enter and establish a solid presence in French-speaking West African markets. Furthermore, a dedicated envelope will be allocated to pre-seed investments, focusing on minority equity investments in collaboration with studios, incubators, or other ecosystem partners.