54 Collective, one of Africa’s leading startup accelerators, has officially announced its closure following a significant funding cut from the Mastercard Foundation, one of its primary financial backers. The decision comes amid broader shifts in funding priorities within the development and investment landscape, leaving 54 Collective unable to sustain its operations.
The closure is a major blow to Africa’s startup ecosystem, as 54 Collective has played a pivotal role in supporting early-stage businesses in fintech, agritech, edtech, and e-commerce. However, the accelerator struggled to secure alternative funding after the Mastercard Foundation, which had been a key sponsor, redirected its focus toward other strategic initiatives. The loss of this financial support, combined with economic uncertainty and shifting investor priorities, ultimately led to the difficult decision to shut down.
The Impact of Mastercard Foundation’s Funding Withdrawal
The Mastercard Foundation has been a major player in supporting African entrepreneurship, particularly in driving youth employment and digital innovation. Over the years, the foundation channeled substantial resources into programs like 54 Collective to help startups scale, access mentorship, and create jobs. However, in late 2024, the Mastercard Foundation announced a strategic shift toward direct workforce development programs, focusing on skilling and employability rather than startup acceleration.
This funding reallocation left 54 Collective struggling to fill the gap. Without sufficient resources to continue its accelerator programs, the organization was forced to wind down its operations, despite efforts to secure new sponsorships and partnerships.
Impact on Startups and Job Creation
One of the most significant contributions of 54 Collective to the African economy has been its role in creating jobs. Through its accelerator programs, the organization helped startups scale their operations, expand their reach, and employ more people. The startups that 54 Collective supported have generated thousands of jobs across various sectors, including fintech, agritech, education, and transportation.
These businesses not only provided employment for their founders but also created a ripple effect across their industries by hiring engineers, marketers, customer support teams, and logistics personnel. In a region where youth unemployment remains a pressing issue, the closure of 54 Collective represents a setback for efforts to create sustainable job opportunities through entrepreneurship.
Startups Supported by 54 Collective
Despite its closure, 54 Collective leaves behind a strong legacy through the startups it helped nurture. Some of the most notable businesses that benefited from its programs include:
- Taimba – A Kenyan agritech startup connecting smallholder farmers to markets, improving food supply chains, and creating jobs in farming and logistics.
- Pezesha – A fintech company that has provided loans to thousands of small businesses, driving job creation in the financial services sector.
- Tala – A mobile lending platform that has expanded access to credit, supporting self-employment and financial inclusion.
- Mookh – A Tanzanian digital ticketing startup that has fueled job growth in the events and entertainment industry.
- Jumia Food – An online food delivery platform creating employment opportunities in logistics and customer service.
- BrighterMonday – A job portal that has helped connect thousands of job seekers with employment opportunities across East Africa.
- Kytabu – An edtech startup providing digital textbooks and online learning solutions, supporting both students and educators.
- GetBoda – A Ugandan ride-hailing platform that has created job opportunities for motorbike taxi operators.
- Sheer Logic – A recruitment agency that has helped businesses hire skilled professionals, strengthening the employment landscape.
- DabaDoc – A health-tech startup improving access to medical consultations while generating jobs in the healthcare sector.
Looking to the Future
While the closure of 54 Collective is a loss for the startup community, its impact will continue through the businesses it helped launch. Many of these startups have established themselves as key players in their industries and will continue to drive job creation and innovation.
The shutdown also highlights the fragility of funding-dependent accelerator programs and the need for long-term sustainability strategies in Africa’s startup ecosystem. As more investors and organizations shift their focus, future startup support initiatives may need to explore alternative funding models, such as revenue-sharing partnerships, venture-building programs, and government-backed incentives.
Though 54 Collective may be closing its doors, its legacy will live on through the entrepreneurs it empowered, the jobs it helped create, and the lasting impact it made on Africa’s innovation landscape. However, the loss of such a vital player in the ecosystem serves as a stark reminder of the importance of sustained investment in African entrepreneurship to ensure that the next wave of startups can continue to thrive.
