Since the beginning of the year, investment vehicles have been forming across the continent to fund the startup ecosystem. Several companies have joined forces to launch a new initiative in this direction.

Mara Group, a conglomerate founded by British entrepreneur Ashish Thakkar, has announced the creation of a $250 million investment vehicle to support African startups. The agreement was signed on the sidelines of the 2024 Future Investment Initiative, held last week in Riyadh, Saudi Arabia.

Mara Group has partnered with Startupbootcamp, a technology accelerator, and India-based investment firm Blend Financial Services to execute this project. The new fund will target growth-stage startups and pre-IPO financing, with a focus on South Africa, Nigeria, Kenya, Côte d'Ivoire, and Egypt.

Besides Côte d'Ivoire, the other four target countries represent Africa’s most attractive startup ecosystems in terms of funding. According to Partech Africa data, startups in the "Big Four"—South Africa, Nigeria, Kenya, and Egypt—drew nearly 79% of the continent’s total venture capital funding in 2023, amounting to $1.79 billion. In 2022, these countries captured 72% of funding, totaling $3.5 billion. Startups in Côte d'Ivoire raised $33 million in 2022 and $21 million in 2023, making it the only Francophone country included in the initiative.

This move comes amid a tightening of capital in Africa’s tech ecosystem since 2023, a year marked by a sharp decline in startup fundraising. According to Africa: The Big Deal, African startups have raised $1.7 billion so far this year, a 32% drop from the same period in 2023.

Adoni Conrad Quenum