The International Finance Corporation, the private sector wing of the World Bank, is planning on making an equity investment of twenty-five million euros ($26.43 million) in the Partech Africa Fund II, which is managed by the venture capital firm Partech and headquartered in Paris.
In its public statements, IFC announced that it planned to buy a holding of not more than 20 per cent.
The organization announced that it would contribute an additional fifteen million euros ($15.9 million) toward potential co-investment prospects with the funds in the future. According to documents with the IFC, the Partech Africa Fund II would then make investments “from seed to Series D rounds, and consequent rounds in top portfolio firms.” The approval of the investment is currently pending.
The International Finance Corporation plans to make an equity investment in the PAFII for 25 million euros. This investment will not exceed 20 percent of the total Fund commitment.
According to the information provided by International Finance, “In addition, IFC has suggested a second co-investment envelope of 15 million euros on a delegated authority premise, which will enable IFC to partake in potential co-investment possibilities along with the Fund.”
The IFC says that the project will make it easier for entrepreneurs all over Africa to access capital and improve their operational value. Compared to most other emerging markets, Africa has limited access to venture capital. According to the IFC, the project is also projected to boost innovation in key African markets by supporting market-disrupting digital business models.
Among Partech’s fifteen investments in nine African countries are companies such as Wave, which is based in the United States as well as Senegal it offers mobile money services; Tugende, which is a Ugandan mobility-tech company, Trade Depot, which is based in Nigeria and the US which connects consumer goods brands with retailers,
The desperately required capital will be made available by the PAF II to early-stage and growth-stage tech startups across the continent.