In order to strengthen the venture capital ecosystems in Africa, the Middle East, Central Asia, and Pakistan, IFC has launched a new platform worth US$225 million. Through this platform, IFC will invest in early-stage businesses that use technology to address development challenges in the areas of agriculture, healthcare, education, and other industries.
Despite having a huge development potential, these areas received less than 2% of the US$643 billion in worldwide venture capital financing in 2021.
The digital economy, for instance, has the potential to increase Africa’s gross domestic product (GDP) by US$712 billion by the year 2050. IFC will invest in tech companies with equity or investments that resemble equity in order to assist them develop into scalable businesses that can draw conventional equity and debt finance.
IFC will also work with other teams using the platform to create and bolster venture capital ecosystems.