TLDR:
- The United Nations Development Programme (UNDP), Rwanda, and seven other African countries have launched Timbuktoo, a $1 billion initiative to invest in 1000 tech startups across Africa over the next 10 years.
- The Timbuktoo Africa Innovation Fund will commit $350 million to attract an additional $650 million from private investors.
The article highlights the key elements of the newly launched Timbuktoo Africa Innovation Fund, a $1 billion fund backed by the United Nations Development Programme (UNDP), Rwanda, and seven other African countries. The fund aims to invest in 1000 tech startups across Africa over the next 10 years, making it the largest ever startup fund in Africa.
Timbuktoo will provide financing for accelerators and venture builders from the $350 million committed by the fund. It will also make investments of up to $800 million in venture firms in eight African countries alongside private partners. The fund will focus on different sectors in each country, including tourism and hospitality startups in Morocco, edtech in Senegal, fintech in Nigeria, agritech in Ghana, creatives in Cape Town, greentech in Nairobi, and health tech in Rwanda.
The fund will work with local universities to support tech ventures and aims to make pre-seed, seed, and pre-Series A investments in startups on an equity basis. The article also highlights the role of foreign development banks in contributing to the venture capital African startups have received, mentioning institutions like the International Finance Corporation and the European Investment Bank.
Rwanda will serve as the management hub for the fund, with the country’s president, Paul Kagame, making the first public commitment of $3 million to the fund. This decision reaffirms Rwanda’s position as an international financial services hub and has attracted leading fintech firms to open offices in the country.
Overall, the launch of the Timbuktoo Africa Innovation Fund is seen as a significant development in the African tech startup ecosystem, providing much-needed capital and support to nascent ventures across the continent.
