This move aims to fuel innovation and entrepreneurship across the continent’s rapidly growing tech sector.

The IFC’s investment comes from their $225 million venture capital platform launched in 2023.

The fund targets strengthening emerging VC ecosystems and early-stage startups in Africa, the Middle East, Central Asia, and Pakistan.

Despite Africa’s vast potential, a significant funding gap exists. The continent received only 2% of global venture capital deals in Q3 2023.

This lack of capital, combined with a global slowdown in venture capital investment, hinders tech ecosystem growth beyond established markets.

“IFC and 4DX Ventures share a commitment to empowering tech entrepreneurs driving innovation in crucial sectors like climate, healthcare, and education,” said Walter Baddoo, Co-Founder and General Partner at 4DX Ventures.

The partnership aims to support promising startups in building impactful businesses that contribute to Africa’s sustainable development.

4DX Ventures’ new fund, backed by IFC’s investment, will focus on companies offering tech solutions that improve productivity, efficiency, and competitiveness across Africa.

Their previous investments include prominent players like MaxAB (e-commerce, Egypt), mPharma (health tech, Ghana), and Wasoko (B2B e-commerce, Kenya).

Mohamed Gouled, IFC’s Vice President of Industries, highlighted the broader goals of their venture capital platform.

These include increasing access to essential services, boosting business competitiveness, and creating jobs through digital transformation.

He believes investments in funds like 4DX Ventures will equip African entrepreneurs with the resources needed to scale their innovations and drive sustainable growth.