AfDB Backs €6.5m Tech Fund to Boost Start-Ups in French-speaking Africa

The Bank Group will commit €4.5 million in equity, alongside a €2 million first-loss hedging tranche provided on behalf of the European Commission under the Boost Africa Programme.

The African Development Bank Group (AfDB) has approved a €6.5 million investment in the Saviu II venture capital fund to accelerate the growth of technology start-ups in French-speaking West and Central Africa.

The funding aims to strengthen early-stage innovation ecosystems by supporting seed-stage companies and their first institutional fundraising rounds — a financing gap that continues to constrain start-up growth across the region.

Blended Finance to De-Risk Innovation

The Bank Group will commit €4.5 million in equity, alongside a €2 million first-loss hedging tranche provided on behalf of the European Commission under the Boost Africa Programme.

The blended finance structure is designed to reduce investment risk and crowd in additional capital, enabling Saviu II to prioritise high-potential companies with strong technological or digital components.

By absorbing early losses if necessary, the first-loss mechanism enhances investor confidence and supports venture capital expansion in markets often perceived as high-risk.

Targeting 20 High-Growth Start-Ups

Saviu II — the second fund managed by Saviu Partners — plans to invest between €500,000 and €3 million in approximately 20 early-stage, technology-oriented B2B companies.

The fund will focus on start-ups either in the seed phase or undertaking their first institutional fundraising round, helping them scale operations, strengthen governance and expand regionally.

At least 60% of the fund’s commitments will target French-speaking countries in West and Central Africa, including:

• Côte d’Ivoire

• Cameroon

• Benin

• Senegal

• Togo

• Burkina Faso

• Mali

The fund may also co-invest in promising East African technology firms that plan to expand into Francophone West Africa and establish a strong presence there.

Dedicated Pre-Seed Envelope

Recognising the scarcity of capital at the earliest stages, Saviu II will allocate a dedicated envelope for pre-seed investments. These minority equity stakes will typically be made in partnership with start-up studios, incubators and other ecosystem actors.

The approach aims to strengthen the innovation pipeline by supporting entrepreneurs from ideation through to institutional investment readiness.

Strengthening Africa’s Digital Economy

The AfDB’s investment aligns with broader efforts to deepen Africa’s digital transformation and entrepreneurship ecosystems. Access to risk capital remains one of the biggest barriers facing start-ups in Francophone Africa, where venture funding levels historically lag behind Anglophone markets.

Through Boost Africa — a joint initiative between the African Development Bank and the European Commission — the Bank Group is expanding support for early-stage funds that nurture innovation, create jobs and build competitive digital economies.

By backing Saviu II, the Bank aims to catalyse growth among technology-driven enterprises capable of driving productivity, regional integration and private sector development across Francophone Africa.