The fund, known as the “Seed Fund of Funds,” will provide much-needed early-stage capital to local startups, addressing a significant funding gap that has historically hindered the growth of emerging technology-driven businesses in the country.

The initiative is expected to support at least 50 startups by providing seed capital, with a strong focus on fostering innovation and driving transformation within the South African economy.

The fund will be managed by experienced fund managers, who will help entrepreneurs turn their innovative ideas into scalable ventures with the potential to succeed both locally and internationally.

Ketso Gordhan, CEO of the SA SME Fund, highlighted the crucial role that seed funding plays in driving entrepreneurship and innovation.

“Seed funding is the lifeblood of innovation and entrepreneurial growth. Without it, many great ideas would never see the light of day. This fund will ensure that South Africa’s brilliant minds have the resources they need to succeed,” he said.

South Africa’s venture capital ecosystem has traditionally focused on later-stage investments, leaving early-stage startups with limited access to capital.

The launch of this seed fund aims to bridge that gap, creating an environment where emerging entrepreneurs can thrive.

In addition to supporting innovation, the fund’s backers believe it will contribute to job creation and economic transformation, aligning with global trends where tech companies are key drivers of employment in innovation-led industries.

Over the next few years, the fund will distribute capital through five skilled fund managers, helping to ensure the sustainability of South Africa’s venture capital industry while empowering the next generation of tech entrepreneurs.

Patrick Krappie, acting CEO of TIA, noted the importance of this initiative for the country’s entrepreneurial landscape, stating, “This fund will play a catalytic role in building the foundations of a strong seed-stage funding ecosystem.”

Gladwyn Leeuw, CEO of E Squared Investments, echoed this sentiment, emphasizing the role of accessible capital in driving innovation and economic growth.

E Squared Investments, known for its commitment to transformative change, is a key player in this fund, supporting the vision of fostering technological advancement and economic progress in South Africa.

Equitane, previously known as the Africa Transformation and Industrialization Fund (ATIF), led the funding round, which included contributions from partners like Morgan Stanley Inclusive Ventures Lab and Silverbacks Holdings.

Founded by Adaora Oramah in 2021, AMAKA Studio originally centered on telling stories about Pan-African womanhood.

Since then, the platform has evolved into a broader media-tech space that provides creators with resources to monetize their work and connect with major brands.

With a growing audience, AMAKA Studio has worked alongside influencers and global brands such as Nike and Disney.

At the heart of the company’s vision is the promotion of financial inclusion, representation, and equity for creators from underrepresented groups.

The newly secured funds will be used to expand AMAKA’s creator platform, AMAKA Gigs, designed to connect creators directly with brands.

This platform aims to simplify the process of finding opportunities, allowing creators to secure paid commissions.

The integration of enhanced payment solutions will address the common challenge of compensation within the global creator economy, ensuring seamless transactions for creators.

Additionally, the funding will support targeted marketing campaigns to grow AMAKA’s community and increase user engagement.

CEO Adaora Oramah emphasized AMAKA’s commitment to addressing the needs of underrepresented creators, ensuring they have the tools to build sustainable careers.

She stated, “We are focused on driving economic impact and fostering change for a dynamic community that has long been underserved.”

This funding includes a major investment of US$300 million from The Fund for Export Development in Africa (FEDA), the development arm of Afreximbank. 

With this infusion, FEDA secures a significant stake in ARISE IIP, marking a pivotal strategic partnership between the two entities.

Additionally, the capital raise is backed by a US$143 million contribution from Africa Finance Corporation (AFC), a key shareholder in ARISE IIP.

This new investment builds on a longstanding debt financing relationship between ARISE IIP and Afreximbank, which has facilitated over US$2 billion in funding for ARISE IIP’s projects across the continent over the past 12 years.

With this latest round of financing, ARISE IIP’s total equity capital now exceeds US$1 billion.

AFC remains the majority stakeholder, followed by Afreximbank’s FEDA and Equitane.
The capital injection is set to accelerate ARISE IIP’s growth and improve its operational capabilities across 12 African countries, including key markets such as Cameroon, Gabon, Nigeria, and Rwanda.

The funds are expected to enhance Africa’s industrial infrastructure and position the continent more competitively within global value chains, aligning with Afreximbank’s mission to promote both intra-African and international trade.

ARISE IIP’s CEO and Founder, Gagan Gupta, welcomed the partnership, stating:

“This equity partnership with Afreximbank significantly strengthens our financial capacity to execute our pan-African industrial development strategy. It’s a strong endorsement of our business model and future prospects.”

Prof. Benedict Oramah, President of Afreximbank, also expressed satisfaction with the investment, emphasizing that it aligns with Afreximbank’s strategic goals of fostering industrialization and boosting trade across Africa.  

Marlene Ngoyi, CEO of FEDA, reinforced the importance of the investment in promoting sustainable industrial development across Africa.

She highlighted the role of ARISE IIP in creating high-impact industrial infrastructure that will drive economic diversification and strengthen Africa’s position in global markets.

This marks TLcom’s first venture into South Africa, as the firm previously focused on East and West African markets.

The new funding will allow LittleFish to enhance its platform, which aims to help banks better serve small and medium-sized enterprises (SMEs) in South Africa by leveraging fintech solutions.

The investment represents a strategic move by TLcom to tap into South Africa’s expanding fintech sector, which has been drawing increasing attention from global investors.

It aligns with TLcom’s broader strategy to diversify its investments across key African markets.

In April 2024, the firm completed the final close of its TIDE Africa Fund II, a $154 million fund aimed at seed and Series A startups across the continent.

TLcom, which manages over $300 million in assets, has previously invested in notable startups such as Andela, Twiga Foods, and Kobo360.

Founded in 2021 by Brandon Roberts and Miod Davith Kahwa, LittleFish is on a mission to bridge the financial services gap for Africa’s 80 million SMEs.

The company offers a digital platform that enables banks, insurers, and fintechs to streamline financial operations, provide digital payment processing, and offer access to credit.

Through these partnerships, LittleFish helps traditional financial institutions better serve their SME clients with more efficient and customer-focused services.

The funding is a mix of debt and equity, with contributions from Acumen Resilient Agriculture Fund, Climate Resilient Africa Fund, Marula Square, Plug and Play, Tekedia Capital, and Sahel Capital.

Founded by Riches Attai, along with Chichebem Jibunoh and Winners Attai, Winich Farms was born out of the need to tackle significant inefficiencies in Nigeria’s agricultural sector.

Despite Nigeria being one of the world’s largest producers of beans, Attai noted that domestic prices for the crop were surprisingly higher than in international markets.

This paradox spurred the creation of Winich Farms to improve supply chain transparency and provide smallholder farmers with better access to markets and financial services.

With over 139,000 farmers using its platform across 16 states, Winich Farms directly connects these small-scale producers with food processors, bypassing middlemen and lowering costs.

The startup also equips farmers with digital wallets and has introduced a pilot debit card program in partnership with Sterling Bank, helping farmers improve their financial standing by building creditworthiness.

The new $3 million injection, which includes $2.5 million in equity from key investors such as Acumen Resilient Agriculture Fund and $590,000 in debt financing from Lagos-based Sahel Capital, will further fuel Winich Farms’ expansion.

The funds will be used to scale its operations, enhance its digital platform, and expand its financial services to more farmers.

The company also aims to increase the number of debit cards in circulation from 25,000 to 195,000 in the coming years.

“Smallholder farmers face multiple bottlenecks along the value chain, limiting their productivity and access to markets, which in turn hinders their income potential and growth,” said Tamer El-Raghy, Managing Director of Acumen Resilient Agriculture Fund.

“Investing in Winich aligns with our goal of growing local businesses that support smallholder farmers toward increased productivity, sustainable agricultural development, better livelihoods, and increased food security.”