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.”

According to Ambassador Abu Bakr Hefny, Deputy Minister of Foreign Affairs and Emigration, the CBE is set to launch Africa’s first sovereign investment guarantee agency with a starting capital of $50 million.

Speaking at a regional workshop in Cairo on Monday, Hefny highlighted that the new agency is designed to strengthen investments and exports within Africa, offering much-needed security for investors.

The workshop was organized to ratify amendments to the Common Market for Eastern and Southern Africa (COMESA) Investment Agreement.

“This agency will be the first of its kind, dedicated to bolstering investor confidence by implementing internationally recognized investment guarantees,” Hefny said.

He added that the agency will offer a reliable framework for Egyptian companies operating within Africa, encouraging further trade and economic cooperation.

Hefny emphasized that regional integration and economic collaboration are crucial for fostering sustainable development among COMESA member states.

He urged African nations to seize this opportunity to promote trade, investment, and business partnerships that could lead to greater prosperity across the continent.

Hefny also spoke on the broader significance of investment, noting that it goes beyond capital flows. He described investment as the foundation of economic growth, creating jobs, reducing poverty, and driving innovation.

He further explained that the revised COMESA Investment Agreement reflects the region’s shared goal of achieving economic stability and growth.

He argued that cooperation among member states will unlock new opportunities and enhance their collective competitiveness in regional and global markets.

In light of ongoing global challenges, including post-pandemic recovery, climate change, and geopolitical tensions, Hefny stressed the importance of building a strong economic bloc.

Simplifying investment procedures, promoting transparency, and fostering trust among member states, he said, will attract more foreign direct investment and encourage joint ventures.

Twelve innovative startups vied for the top prize in the competition, which awarded Daba Finance US$50,000 for its pioneering investment platform.

Daba Finance’s platform simplifies access to trading stocks, bonds, and other financial products.

A panel of five industry experts judged the finalists, assessing the startups based on innovation, market potential, scalability, and team strength.

Daba Finance’s win was a testament to its goal of making investment opportunities accessible to all.

CEO BOUM III JR celebrated the victory, saying, “Winning this challenge propels our mission to make investing and wealth-building opportunities available for all. With Ecobank as our partner, we are accelerating the journey to making our innovation accessible to millions.”

In addition to Daba Finance’s victory, Melanin Kapital from Kenya secured second place and a prize of US$10,000, while Guinean fintech YMO took third place.

This year’s competition also included a “Public Choice Award,” which went to MiaPay from Togo, voted for by the general public.

The Ecobank Fintech Challenge 2024 attracted a record 1,550 entrants from 70 countries, highlighting its growing reputation as a leading platform for fintech innovation.

All finalists were inducted into the Ecobank Fintech Fellowship, giving them access to Ecobank’s Banking Sandbox for testing and developing their solutions, along with exposure to investors and industry leaders.

Jeremy Awori, Group CEO of Ecobank, expressed his admiration for the quality of the competition and congratulated Daba Finance on their well-deserved win.

“I am incredibly impressed by the standard of pitches from our finalists. Daba Finance stood out, and I am excited to see how our partnership will help them scale,” Awori remarked.

Ecobank’s Fintech Challenge, launched in 2017, has received over 7,000 applications from fintech innovators worldwide, with 72 startups so far joining the Ecobank Fintech Fellowship.

The announcement was made at the Global Africa Business Initiative (GABI), held during the United Nations General Assembly.

AFC will lead the financing of the first phase of the Itana project, which is valued at $100 million.

The corporation is working with Itana alongside partners such as Future Africa, PwC Nigeria, and Charter Cities Institute as part of the Initiative for the Promotion of Digital Economic Zones in Nigeria (DiFZIN).

In August 2024, the Nigerian government established a steering committee dedicated to the development of digital economic zones.

The committee includes key ministers, such as those from finance, justice, industry, trade, investment, communications, and the digital economy.

Africa’s digital economy has seen substantial growth over the past decade, with the number of internet users rising from 216 million in 2015 to 728 million by 2024.

Startup funding has also surged, with African startups raising over $4 billion in 2023, up from less than $200 million in 2015.

However, despite these positive trends, regulatory challenges in key startup hubs like Nigeria have caused many entrepreneurs and investors to hesitate.

Itana aims to address these challenges by fostering more favorable conditions for the digital economy.

Itana, co-founded by CEO Luqman Edu, COO Coco Liu, and Iyinoluwa Aboyeji of Future Africa, is developing a digital economic zone in Lagos, Nigeria.

This zone is designed for businesses in tech, finance, and services seeking to expand across Africa.

Companies that register within the Itana free zone will benefit from exemptions such as corporate income tax and value-added tax, along with the freedom to process payments in any currency and avoid import duties on physical products.

Since its founding, Itana has raised $2 million from investors, including Future Africa, Promonos Capital, and LocalGlobe.

The first phase of its development includes a tech campus in Nigeria that will accommodate up to 5,000 people.

Itana already boasts over 2,000 digital members, and several businesses have been licensed to operate within the zone, with more in the application pipeline.

This funding will allow the company to expand its inventory of solar home systems, providing energy access to 182,000 people, including 145,000 who will receive electricity for the first time.

The investment will be released in two phases. The first tranche of $1 million will be disbursed in US dollars, with repayments made in Malawian Kwacha. To mitigate hedging costs, a subsidy from the TCX EU Market Creation Facility will support this.

The second tranche will be both disbursed and repaid in US dollars. This structure helps Yellow Malawi manage foreign exchange risks and sustain its growth.

Maya Khonje-Stewart, Co-Founder of Yellow Malawi, highlighted the importance of the partnership with Acumen in helping the company achieve its goal of providing clean, affordable, and reliable energy to more Malawians.

“Acumen’s Hardest-to-Reach initiative understands the local context and has designed financing that not only meets our needs but also furthers our mission of expanding energy access,” she stated.

Malawi faces significant energy challenges, with only 11% of its population connected to electricity. While 42% of urban residents have access to power, only 4% of rural households are electrified.

Yellow Malawi, founded in 2018 by Mike Heyink and Maya Stewart, provides solar home systems and mobile phones to rural and off-grid customers in Malawi.

The company has already served over 530,000 customers with energy solutions and 62,000 people with smartphones.

In 2023, Yellow Malawi secured $14 million in Series B funding to support its expansion into Rwanda, Uganda, Zambia, and Madagascar, as well as to launch digital and financial products.

Acumen’s Hardest-to-Reach initiative, a $250 million program, aims to promote clean energy in underserved markets across 16 African countries, including Malawi.

Alongside its investment in Yellow Malawi, Acumen’s H2R initiative has also invested $1.25 million in RDG Collective, a Zambian solar energy distributor.

This investment will provide energy access to 66,000 people and supply 180 small businesses with solar generators, contributing to local economic growth.

With these strategic investments, Acumen’s H2R initiative continues to advance its mission of bringing clean energy to some of the most underserved regions in Africa.