AfDB Invests €6.5 Million in Saviu II to Boost Tech Startups in Francophone Africa
The African Development Bank Group (AfDB) has approved a €6.5 million investment in the Saviu II venture capital fund, aiming to accelerate the growth of technology startups across Francophone West and Central Africa. The funding combines a €4.5 million equity investment with an additional €2 million first-loss hedging tranche, contributed on behalf of the European Commission under the Boost Africa Programme.
This strategic investment is designed to strengthen early-stage financing for businesses with strong technological and digital capabilities, particularly in French-speaking countries. By backing Saviu II, AfDB hopes to reduce risks for investors and encourage more private capital to flow into Africa’s rapidly expanding tech sector.
Managed by Saviu Partners, Saviu II plans to invest between €500,000 and €3 million in around 20 seed-stage or early institutional fundraising startups. The fund will mainly focus on B2B technology companies with scalable models, ensuring that promising innovations receive the capital and support they need to grow and expand.
At least 60% of Saviu II’s commitments will target French-speaking countries such as Côte d’Ivoire, Cameroon, Benin, Senegal, Togo, Burkina Faso, and Mali. The fund may also co-invest in promising East African technology firms seeking to enter Francophone markets, broadening opportunities for regional expansion and cross-border collaboration.
Saviu II will also dedicate a special pre-seed investment envelope, often in collaboration with incubators, venture studios, and other ecosystem partners. This builds on the success of Saviu I, launched in 2018 with €10 million, which invested in 12 startups, providing both funding and hands-on support in business development, recruitment, international expansion, and fundraising. Experts predict that the AfDB’s backing will be a game-changer for Africa’s digital economy, helping innovative startups scale faster and attract more private investment.
source: The sun