France has initiated an investment fund of about N500 billion (1 billion Euros) for private sector players in Africa to foster innovation and enable them to scale up their business enterprises.
— R2TV (@R2_TV) July 5, 2018
This was made known by the French President, Emmanuel Macron, at an interactive business forum organized by the Tony Elumelu Foundation in Lagos, where he was a special guest yesterday.
The initiative which is tagged ‘Digital Africa Initiative (DAI)’, is meant to equip private sector players to develop and accelerate an encouraging private sector ecosystem that would enhance the development of venture capitals and attract long-term investors to the continent’s stream of emerging entrepreneurs.
We decided to invest one billion euros, which means N500 billion in the African private sector through the French Development Agency to start the Digital Africa Initiative. –Emmanuel Macron
What Would this Initiative Mean for Africa?
Over recent years, the number of emerging startups on the African business scene has increased, making private sector businesses very critical to the development of the African economy This is particularly because they possess huge potentials for employment and the development of the continent.
Unfortunately, over time, there have been cases of under-performance on the part of these businesses due to challenges like inaccessibility of investment funds.
France endorses an initiative to develop entrepreneurship and innovation in Africa, while offering €1 billion (N500 billion) to kick-start the scheme.https://t.co/hnQekJ6x1J
— The Guardian Nigeria (@GuardianNigeria) July 5, 2018
But with this initiative, investment funds would be readily accessible to big and small companies in Africa, thereby giving them a platform to scale and develop.
Confidence in the African Business Scene Continues to Soar
"Even though Nigeria was the biggest funding destination… Kenya accounted for the most funds raised with $82.8 million—nearly three times the total of funding received by Nigerian startups." https://t.co/I6LPCUcQ6S via @atlascharts
— #BeTheChange (@Fresh_Fredie) July 6, 2018
In recent years, Africa has had more businesses/startups addressing the problems battling the continent and creating innovative solutions to them. And as such, investors are starting to invest more in them.
According to the French President, “nobody should decide your future; you must arise and take responsibility for your continent. If Africa does not succeed, Europe and America will not.”
This is the second promised funds by the French government towards African businesses this year, having recently announced a new government-backed fund for startups across Africa.
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