The United Nations Development Programme (UNDP) has launched a $1 billion innovation fund aimed at supporting startups across Africa, including Nigeria.
Launched during a special session of the ongoing World Economic Forum (WEF) in Davos, Switzerland, alongside African countries leaders, it is themed: ‘Timbuktoo Africa Innovation Fund’.
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, Achim Steiner, presented the initiative, which is positioned to be the world’s largest financing facility bringing catalytic and commercial capital together to support Africa’s startup ecosystem.
Nigeria’s Minister of Communications, Innovation and Digital Economy, Bosun Tijani, was also in attendance.
Attended by global corporate leaders as well as African financial institutions, the occasion marked what is considered a major step in stimulating the African startup revolution, harnessing the momentum of Africa’s major youth demographics and abundance of innovative talent.
UNDP disclosed that Kagame, during the launch, announced an immediate contribution of $3 million to start the ‘Timbuktoo Africa Innovation Fund’, which will be hosted in Kigali.
“We cannot accept that another generation of African young people do not have the tools to reach their full potential. With Timbuktoo’s billion-dollar target, we can create more opportunities for Africa’s youth to put their talent and creativity to good use,” the Rwandan President was quoted.
On his part, Akufo-Addo said: “For many African countries, our foremost challenge now is to ensure we put in place the right structures to enable young Africans to create innovative and compelling businesses that can contribute significantly to job creation and sustainable economic growth. I am excited about the future of our continent. I look forward to seeing us create a future where innovation is encouraged, ingenuity is supported and prosperity is shared.”
Promoted by the UNDP, Timbuktoo aims to address critical gaps and work with African governments, investors, corporates, and universities, to support the African startup ecosystem.
UNDP Administrator, Steiner, explained: “Timbuktoo is a new model of development. We are gathering key actors to push on all fronts at the same time. From startup-friendly legislation, global-class startup building, and de-risking capital to increase investment, to the UniPods – University Innovation Pods – across Africa, we aim to fill critical gaps and support the startup ecosystem. This will enable innovations to grow and benefit people in Africa and elsewhere on the planet.”
It should be noted that the vast majority, 89 per cent, of venture capital coming into Africa is foreign and 83 per cent is concentrated in four countries: Nigeria, Kenya, South Africa, and Egypt, with over 60 per cent of capital flowing to one sector, fintech.
According to the UNDP, Timbuktoo’s ambition is to mobilise and invest $1 billion of catalytic and commercial capital to transform 100 million livelihoods and create 10 million dignified new jobs.
