It focuses on financial inclusion i.e fintech, insurtech, pay as you go, off-grid energy, secondly; online and mobile consumer platforms and thirdly; platforms in industry, education, logistics and transport, health, and agriculture value chain applications.
Partech Africa Fund has successfully completed its first close in January 2018 with €71 million and is targeting a total fund size of at least €100 million through a 2nd round expected to be closed by October/November 2018.
Under the framework of the Boost Africa Program, the Bank will provide €7 million equity investment in the 2nd close. The contributions from both the African Development Bank and the European Investment Bank form part of the Boost Africa Programme, which assists Partech in its fund raising. The Bank is expected to have a seat in the Advisory Board of the Fund.
The fund’s focus aligns well with the Boost Africa objectives to invest in high growth innovative start-ups with a strong social / Base of the Pyramid outreach and impact.
The investment strategy is also in line with the Bank’s Private Sector Operations strategy linking entrepreneurship, investment and economic growth with poverty alleviation and sustainable growth development outcomes and impact.
It also aligns with all High 5s, as the deal flow will also include investees operating in agriculture/value chains, small industrializing start-ups, and off grid energy start-ups. It will support regional integration through connecting scalable businesses within and across regions, and improve the life of the people of Africa through new business models that are inclusive and support less endowed people. It is also in line with the Bank’s Financial Sector Development Policy and Strategy to increase access to financial services for the underserved.