Through this equity investment, the AfDB is indirectly supporting startups that are among the least financed in Africa. This initiative comes against a backdrop marked by a 36% drop, to $3.2 billion, in fundraising by African startups in 2023.

The African Development Bank (AfDB) is boosting early-stage innovation and job creation across Africa with a $10.5 million equity investment in Seedstars Africa Ventures, the development bank announced Wednesday.

The move aims to empower Seedstars, a venture capital fund focused on high-growth African startups, to expand its reach and attract further investors. This will strengthen the continent's entrepreneurial ecosystem, supporting crucial sectors like financial inclusion, healthcare, and off-grid energy.

The AfDB's contribution comprises $7 million from its own resources and $3.5 million from the European Union's Boost Africa program. This injection will enable Seedstars to invest up to $75 million in seed and early-stage startups, providing initial investments of around €250,000 with potential follow-on funding of up to €5 million.

This partnership is expected to unlock vital capital for promising African businesses, creating over 9,000 full-time jobs, particularly for women. It aligns with Boost Africa's goals and reinforces the development bank’s commitment to poverty reduction, sustainable development, and regional integration through entrepreneurship.

Seedstars will prioritize investments in financial inclusion, healthcare technologies, off-grid prepaid energy, retail platforms, and agri-food value chains. This aligns with the AfDB's "High 5" priorities, which focus on agriculture, energy, industrialization, integration, and improved living conditions for Africans.

Samira Njoya