South Africa, Nigeria, others to benefit from IFC investment in tech startups

South Africa, alongside other African nations, is set to benefit from the International Finance Corporation (IFC)’s significant investment of $10.5 million (Sh1.38 billion) aimed at boosting early-stage technology companies across the continent.

The investment initiative, led by 4DX Ventures, a New York-based venture capital firm, targets countries including Kenya, Nigeria, Senegal, and Egypt.

The fund aims to support startups with transformative solutions capable of enhancing productivity, efficiency, and competitiveness continent-wide by addressing concerns over Africa’s limited access to venture capital, with the continent receiving only two percent of global venture deal volume in the third quarter of 2023.

4DX Ventures, known for its focus on supporting African startups, will channel the investment into companies operating in diverse sectors such as fintech, e-commerce, edtech, climate tech, and health tech.

Walter Baddoo, co-founder, and general partner at 4DX Ventures, expressed enthusiasm for collaborating with IFC, highlighting their joint commitment to nurturing tech entrepreneurship and driving innovation across Africa.

Previous investments by 4DX Ventures include Egypt-based e-commerce platform MaxAB, Ghana-based health tech firm mPharma, and Kenya-based B2B e-commerce platform Wasoko (formerly known as Sokowatch).

Mohamed Gouled, Vice President of Industries at IFC, emphasized the importance of supporting tech ecosystems in emerging markets to improve access to essential services, boost business competitiveness, and promote job creation through digital transformation.

Gouled affirmed that IFC’s investment in venture funds like 4DX Ventures aims to facilitate African entrepreneurs’ access to financing and resources necessary for scaling up tech innovations and fostering sustainable growth across the continent.

In addition to providing financial support, IFC will collaborate with 4DX Ventures to implement environmental and social management systems, ensuring that the investments align with sustainable development objectives.