World Bank’s IFC to Invest N2 Billion in Startups in Nigeria and other African Countries
— Allan Cunningham (@aggcc) February 19, 2019
According to an insider, the IFC is “considering an equity investment” in the TLCom-owned fund. Once completed, the IFC, a member of the World Bank Group, would become the latest development finance institution investor in the Africa-dedicated fund.
Launched in 2016, the TIDE (Technology and Innovation for Developing Economies) Africa fund is an investment pool dedicated to financing African startups, particularly Sub-Saharan Africa. The fund invests in fast growth entrepreneurs and companies leveraging technology and innovation to serve the SSA market.
— Africa Legal Tech Network (@ALT_LegalTech) January 9, 2019
TIDE Africa funds majorly target startups in English-speaking parts of Africa, such as Nigeria, Kenya and South Africa. The fund provides these companies with investments ranging from $500,000 to $8 million.
But TIDE Africa focuses much of its investments in companies providing consumer services, financial services, and enterprise technologies.
Two years after it launched, the TIDE Africa fund had grown quickly. Total funds raised reached $45 million by February 2018.
And interestingly, the fund has been able to secure investments from important international finance institutions. These include: the African Development Bank (AfDB) and the European Investment Bank (EIB). France’s Proparco development finance company, is the last known investor in the TIDE Africa fund. It invested $5 million in February 2018.
Meanwhile the IFC is no new comer in startup investing in Africa. Buoyed by a $1 billion venture capital fund, the IFC has made notable investments into different African startups, including a $6 million investment in Nigerian logistics startup, Kobo360. Another investment is its $10 million bet on Kenyan agrotech company Twiga Foods.
Nevertheless, the investment in TIDE Africa, with its local presence, will help to support more startups across the continent.
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