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With AFD’s support, Afrilabs, ABAN move to grow continent’s business space

By Maria Diamond
06 November 2021   |   3:39 am
To fund African startups with innovative digital solutions and measurable impact, AfriLabs has collaborated with African Business Angels Network (ABAN) to officially launch Catalytic Africa, a co-matching fund designed for African startups.

To fund African startups with innovative digital solutions and measurable impact, AfriLabs has collaborated with African Business Angels Network (ABAN) to officially launch Catalytic Africa, a co-matching fund designed for African startups.

Catalytic Africa is an investment tool that aims to increase the pool of capital available to promising African growth-stage entrepreneurs, support the startup ecosystem and increase the visibility of impact to institutional funders.

The event, which held at the AfriLabs annual gathering on Thursday, October 28, 2021, was targeted at increasing the investments made by investors in African startups, presenting reliable ecosystem data and insights to impact reporting for all stakeholders and ultimately strengthen ABAN and innovation hubs.

Executive Director, AfriLabs, Anna Ekeledo explained that to access the matching funding, startups are expected to participate at the hubs from AfriLabs and ABAN investors.

She said: “The maximum financing from Catalytic Africa is €60,000 per transaction. If the business angel invests an amount less or equal to €10,000, then the matching fund will double the amount of funding the startup receives from the ABAN investors. If the business angel invests more than €10,000, then the matching fund will triple the amount of funding the startup receives from the ABAN investors.”

“We have been working extremely hard to make this come to life and today, we are happy to launch Catalytic Africa, the game changer that will support startups across the continent. This will help hubs within our network attract startups as Catalytic Africa serves as an incentive and has the ability to offer matching funds for their startups. We have designed this matching fund to offer value and sustainability to all stakeholders, which also greatly benefits institutional funders and the government in tracking the impact of their funds’ long term. The platform also hosts a range of toolkits that help strengthen the capacity of hubs and angel groups.”
  
Also commenting, President ABAN, Tomi Davies, said: “We look forward to growing the African business space by helping businesses find the matching funds and access opportunities that will truly impact the continent. We as ABAN aim to position Catalytic Africa as the continent’s leading startup matching fund because ‘now is the time to invest in Africa.”

Board Chair, AfriLabs, Rebecca Enonchong, also said: “The goal of Catalytic Africa is to support the tech ecosystem and we have made it as simple as possible without compromising on high quality standard. I also use this opportunity to extend our deepest appreciation to Agence Française de Dévelopement (AFD) for trusting us with 1.5M euros to start the Catalytic Africa funds. We look forward to encouraging and stimulating nascent angel networks, and propel the growth of the African tech ecosystem.”

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