AfDB Commits €6.5M as Limited Partner in Saviu II Fund, Targeting Underserved Tech Startups in Francophone Africa
In a move to expand and develop startups in Africa, African Development Bank Group (AfDB) has approved a sum of €6.5 million investment in the Saviu II venture capital fund. This funding is targeted at strengthening support for early-stage technology specifically located in Francophone West and Central Africa. The development finance institution is structured to enhance access to venture capital for emerging African tech companies and accelerate innovation across the region.
The fund is said to have been approved earlier in the year positioning the bank as a limited partner in the Saviu II fund. On behalf of the European Commission under the Boost Africa programme, the investment will consist of €4.5 million in equity financing from the AfDB and €2 million structured as a first-loss installment.
According to the investment plan, the fund plans to commit between €500,000 and €3 million to roughly 20 entrepreneurs, focusing on businesses that are either in the seed stage or in their initial institutional funding rounds. Industries like fintech, agritech, healthtech, logistics, edtech, and cleantech will be the focus of the Saviu II fund, which is managed by Saviu Partners.
With focus on French-speaking countries in West and Central Africa, we have Côte d'Ivoire, Senegal, Benin, Cameroon, Togo, Burkina Faso, and Mali receiving about 60% of the funding. Historically speaking, these markets have received less venture capital when compared to major startups in countries such as South Africa, Kenya, and Nigeria.
This project would help unlock new innovation hubs and boost the growth of technology-driven firms throughout the region by distributing money toward less developed Francophone areas. This investment by AfDB demonstrates the growing efforts of development finance organisations to diversify the venture capital ecosystem on the continent and close Africa’s early-stage funding gap.
About African Development Bank Group (AfDB)
A multilateral development finance organization, the African Development Bank Group (AfDB) is committed to advancing sustainable development, economic expansion, and the reduction of poverty throughout Africa. It was founded in 1964 and began operating formally in 1966. One of the most significant financial institutions supporting development on the continent, the bank has its headquarters in Abidjan, Côte d'Ivoire, and serves 54 African and 27 non-African member countries.