According to Ashish Thakkar, founder of Mara Group and a leading British-East African entrepreneur, the fund, which is expected to make its first investments within three to six months, will target key tech ecosystems across the continent.

The deal, sealed during the Future Investment Initiative in Saudi Arabia, targets vibrant startup ecosystems in South Africa, Nigeria, Kenya, Ivory Coast, and Egypt.

With the youngest and fastest-growing population globally, Africa is turning to technology to address challenges like infrastructure gaps.

Key cities like Cape Town, Johannesburg, Nairobi, and Ebene are emerging as tech hubs, as noted in a report by New World Wealth and Platform45.

Startupbootcamp, a global accelerator network with a portfolio worth $6 billion, is a critical partner in the venture.

Thakkar highlighted the importance of scale in investing, stating:

“We’ve engaged in extensive angel investments as a group, but achieving economies of scale is crucial.”

The fund will focus on early-stage and pre-IPO rounds, with plans to evolve into multi-stage investments.

“This is a strong start,” Thakkar said. “Our long-term vision includes creating both early and later-stage funds.”

Thakkar, who co-founded Atlas Mara Ltd., views the initiative as a pivotal opportunity to strengthen Africa’s tech ecosystems.

ETG’s portfolio spans various sectors, including agricultural inputs, logistics, supply chain optimization, digital transformation, and energy.

The package includes $65 million from the Bank’s own resources and an additional $10 million in concessional co-financing from the Agri-Food Catalytic Financing Mechanism (ACFM).

This Special Fund, supported by Canada’s Department of Foreign Affairs, Trade, and Development, focuses on empowering gender-oriented and underserved agricultural SMEs in Africa.

The funds will be allocated to ETG’s Sustainable Linked Loan facility, which aims to strengthen its core value chain assets.

The financing will target ETG’s operations in 14 African nations, including Ghana, Ethiopia, Kenya, Nigeria, and Mozambique.

These funds will enhance ETG’s processing and packaging facilities, improve warehouse infrastructure, and provide farmers with fertilizers and other agricultural inputs.

Additionally, the financing may be extended to up to 28 African countries as needs arise.

The Sustainable Linked Loan facility incorporates annual sustainability performance indicators focusing on decarbonization, reforestation, zero deforestation, farmer support services, and gender empowerment.

Non-compliance with these targets carries direct financial repercussions, encouraging adherence to sustainability goals.

ETG aims to engage 600,000 smallholder farmers by 2027, with a focus on including women, who are expected to comprise 25% of the beneficiaries.

Training on sustainable farming practices and enhanced access to resources will be central to this initiative. The project also seeks to boost exports from regional member countries and promote intra-regional trade within key African economic blocs such as ECOWAS, SADC, and EAC.

Dr. Beth Dunford, Vice President for Agriculture, Human, and Social Development at the Bank, highlighted the importance of this initiative:

“We are thrilled to expand our partnership with ETG and support its commitment to strengthening women’s economic development in Africa. Access to finance and training in agriculture will contribute to food security and economic growth.”

The financing aligns with the African Development Bank’s ‘High 5’ priorities, particularly “Feed Africa,” “Integrate Africa,” and “Improve the Quality of Life for the People of Africa,” as well as the Bank’s Ten-Year Strategy 2024–2033.

It aims to transform Africa’s agricultural sector into a commercially viable industry, fostering food self-sufficiency across the continent.

Richard Ofori-Mante, Director of the Agricultural Finance and Rural Development Department at the Bank, emphasized the broader implications of the financing:

“This transaction not only promotes sustainable practices within ETG’s operations but also amplifies their influence on the supply chain, contributing significantly to the Sustainable Development Goals.”