EIB Global has made a US$30 million equity investment in Seedstars Africa Ventures I. This venture capital fund is designed to provide risk capital to innovative businesses and startups across Africa. The fund was created by Maxime Bouan, Tamim El Zein and Bruce Nsereko Lule.
They established the fund in partnership with Seedstars, a global organization that invests in and supports entrepreneurs from emerging markets. Another key partner is LBO France, a multi-country multi-specialist investment platform that seeded the initiative. It has now secured a US$30 million commitment from EIB Global, a specialized arm of the European Investment Bank.
European Union Financial Backing
The European Investment Bank acts as the European Union’s long-term lending institution. EIB Global is devoted to increasing the impact of international partnerships and development finance. The US$30 million investment is backed by the EU through specific financial channels.
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The funding consists of US$20 million from the ACP Trust Fund and US$10 million from the Boost Africa programme. With this investment, the EIB has now fully deployed Boost Africa. This programme was launched in 2016 with the aim of boosting sustainable jobs and prosperity through venture capital for African entrepreneurs.
“Encouraging and promoting innovation and digitalisation is key to developing strong and sustainable economies,” said EIB vice president Ambroise Fayolle. “African entrepreneurs hold the key to the continent’s future, creating jobs, reducing inequality and improving quality of life. The EIB, as part of Team Europe, is committed to supporting African businesses, and we are proud of the success of Boost Africa and the ACP Trust Fund.”
Fund Targets and Future Growth
This full deployment of capital suggests a maturing relationship between European development finance and African venture markets. By utilizing equity rather than traditional loans, institutions are taking a direct stake in the success of local innovation. It indicates a long-term belief in the viability of the startup ecosystem as a driver for economic stability.
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Seedstars Africa Ventures I is based in Nairobi and Paris. The fund stated that the EIB’s involvement validates their strategy. “The anchoring ticket provided by the European Investment Bank is a sign to our investment thesis and the work we do across Africa,” it said.
“It signals the relevance of our positioning as well as the effectiveness of our support to portfolio companies. This recognition will further help us onboard both African and foreign investors in the fund to reach our US$80 million to US$100 million target size,” the fund added.
The fund expects to reach a first close early this year. Despite the formal timing, it has already completed four transactions. The companies involved are Symbol Power Services, Poa! Internet, Shamba Pride and Bizao. EIB Global continues to focus on development finance to support sustainable economic growth in partner countries.
