Following a steep decline in venture capital (VC) funding for Africa's tech ecosystem in 2023, the United Nations Development Programme (UNDP) has partnered with African leaders to launch a new initiative aimed at revitalizing this critical sector.
The United Nations Development Programme (UNDP) unveiled a ground-breaking $1 billion initiative, Timbuktoo, at the World Economic Forum in Davos on Wednesday, January 17, aiming to empower African startups and transform millions of lives.
This pan-African fund seeks to mobilize and invest $1 billion in catalytic and commercial capital to unlock immense potential: transforming 100 million livelihoods and creating 10 million dignified new jobs across the continent.
"Timbuktoo is a new model of development. We are gathering key actors to push on all fronts at the same time. From startup-friendly legislation, global-class startup building, and de-risking capital to increase investment, to the UniPods – University Innovation Pods - across Africa, we aim to fill critical gaps and support the startup ecosystem," declared UNDP Administrator Achim Steiner.
Timbuktoo arrives at a crucial juncture. Recent data from CB Insights indicates a projected 40% decline in African tech ecosystem funding in 2023, reaching a meager $1.8 billion – the lowest since 2020. While this decline reflects a global trend, the UN agency is particularly concerned about Africa's unique challenges. These include the low global value of African startups (0.2%), the heavy dependence on foreign venture capital (89%), and the concentration of funding in just four countries – Nigeria, Kenya, South Africa, and Egypt.
Timbuktoo seeks to reshuffle the deck and ensure all young African tech talents have access to the resources they need. Rwandan President Paul Kagame emphasized this goal: "We cannot accept that another generation of African young people do not have the tools to reach their full potential. With Timbuktoo’s billion-dollar target, we can create more opportunities for Africa’s youth to put their talent and creativity to good use." President Kagame further announced a $3 million contribution to launch Timbuktoo's African Innovation Fund, to be headquartered in Kigali, Rwanda.
Adoni Conrad Quenum
