(Ecofin Agency) - The Global Innovation Initiative Group announced it has launched a fund to fuel innovation in Africa. The vehicle will inject $100 million in African early-stage tech startups over the next three years.
The GIIG Africa Fund aims to achieve returns beyond 25%. "We are not just launching a new fund, rather, this is the dawn of a new way of finding and funding startups in Africa since our candidates will have had to go through a vigorous competition and vetting process to be eligible for funding. This means they will be the cream of the crop, thereby increasing our investors' chances of success," GIIG Founding Partner Mahyar Makhzani said.
GIIC investment comes with growth support, access to high-value networks, and accelerated market penetration to maximize returns for startups and investors.
According to a McKinsey study cited by the Group, Africa will be home to nearly 1/5 of the world's population by 2025, and by 2045 its cities will have more people than India and China combined. Subsequently, consumption will escalate on the continent. This will, supported by the continental free trade deal, create an estimated $5.6 trillion in trade opportunities.
Since January 2021, African technology companies are breaking the record for raising funding. In the first nine months of the year, more than $1.44 billion was mobilized by fintech companies alone. This reflects the confidence of investors and the dynamism of African tech.