The United Nations Development Programme (UNDP) has launched a $1 billion innovation fund aimed at supporting startups across Africa. Tagged the timbuktoo Africa Innovation Fund, the initiative was launched together with African countries’ leaders during a special session of the ongoing World Economic Forum in Davos, Switzerland.
President Paul Kagame of Rwanda, President Nana Akufo-Addo of Ghana, the Secretary General of the African Continental Free Trade Area Secretariat, Wamkele Mene, and UNDP Administrator Mr Achim Steiner presented the initiative, which is set to be the world’s largest financing facility that brings catalytic and commercial capital together to support Africa’s startup ecosystem.
Attended by global corporate leaders, as well as African financial institutions, the occasion marked a major step in sparking the African Startup Revolution, harnessing the momentum of Africa’s major youth demographic and abundance of innovative talent.
According to the UNDP, timbuktoo aims to address critical gaps and work with African governments, investors, corporates, and universities to support the African startup ecosystem. Currently, Africa’s share of global startup value stands at just 0.2%, compared to 2% of global trade value. The vast majority, 89%, of venture capital coming into Africa is foreign capital, and 83% is concentrated in four countries: Nigeria, Kenya, South Africa, and Egypt, with over 60% of capital flowing to one sector, fintech.
During the launch, Rwandan President, Paul Kagame, announced an immediate contribution of $3 million to start the timbuktoo Africa Innovation Fund, which will be hosted in Kigali. Commenting during the launch of the Fund, Ghana’s President, Nana Akufo-Addo, emphasized the importance of supporting the African startup ecosystem and its potential for transforming livelihoods and creating meaningful jobs.
The ambition of timbuktoo is to mobilize and invest $1 billion of catalytic and commercial capital to transform 100 million livelihoods and create 10 million dignified new jobs. What sets timbuktoo apart is its unique design, blending commercial and catalytic capital to de-risk private investment. It takes a pan-African approach to supporting startups while also focusing on the entire ecosystem, engaging and deepening linkages between government policy, universities, corporates, development partners, catalytic partners, and commercial investors.
The launch of the timbuktoo Africa Innovation Fund represents an important milestone in unleashing the potential of Africa’s startup ecosystem. With an emphasis on inclusivity, the Fund aims to create opportunities and bridge the existing gaps, bringing forth a new wave of African innovation to the global stage.
By mobilizing significant capital and combining it with strategic partnerships and support systems, the UNDP and its partners are poised to revolutionize the startup landscape in Africa. The timbuktoo Africa Innovation Fund serves as a catalyst for change, providing aspiring African entrepreneurs with the financial backing and resources they need to turn their innovative ideas into thriving businesses.
With this landmark initiative, Africa’s startup ecosystem is set to receive the much-needed boost it deserves. By investing in young African talent and fostering an enabling environment for innovation and entrepreneurship, the timbuktoo Africa Innovation Fund has the potential to unlock unprecedented economic growth and societal transformation across the continent.
