UNDP Launches $1 Billion ‘timbuktoo’ Fund to Fuel African Startup Revolution

In a groundbreaking move at the World Economic Forum (WEF) in Davos, Switzerland, the United Nations Development Programme (UNDP) has launched the “timbuktoo Africa Innovation Fund,” a $1 billion initiative aimed at catalyzing the growth of startups across the African continent. This historic announcement came during a special session attended by global leaders, including President Paul Kagame of Rwanda, President Nana Akufo-Addo of Ghana, and the Secretary General of the African Continental Free Trade Area Secretariat, Wamkele Mene.

The “timbuktoo Africa Innovation Fund” is poised to become the world’s largest financing facility, strategically combining catalytic and commercial capital to support Africa’s burgeoning startup ecosystem. During the launch, Rwandan President Paul Kagame pledged an immediate contribution of $3 million to kickstart the fund, emphasizing the importance of providing tools and opportunities for African youth to reach their full potential.

President Nana Akufo-Addo of Ghana echoed this sentiment, emphasizing the need for African nations to establish structures that empower young entrepreneurs to create innovative businesses, contributing significantly to job creation and sustainable economic growth. The fund aims to bridge critical gaps in the startup ecosystem by collaborating with African governments, investors, corporates, and universities.

The UNDP, a key promoter of the “timbuktoo” initiative, envisions a comprehensive approach to development. The initiative will address challenges such as startup-friendly legislation, global-class startup building, and de-risking capital to attract more investment. “timbuktoo” also introduces the concept of UniPods – University Innovation Pods – strategically placed across Africa to foster innovation.

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At present, Africa’s share of the global startup value stands at a mere 0.2%, in stark contrast to its 2% share of global trade value. The majority of venture capital flowing into Africa (89%) is foreign capital, with 83% concentrated in four countries: Nigeria, Kenya, South Africa, and Egypt, primarily within the fintech sector. “timbuktoo’s” ambitious goal is to mobilize and invest $1 billion of catalytic and commercial capital, transforming the lives of 100 million people and creating 10 million dignified new jobs.

What sets “timbuktoo” apart is its unique design, blending commercial and catalytic capital to de-risk private investment. With a pan-African approach, the initiative aims to strengthen the entire startup ecosystem by fostering collaboration between government policy, universities, corporates, development partners, catalytic partners, and commercial investors.

As the “timbuktoo Africa Innovation Fund” takes its place on the global stage, it marks a significant stride towards unleashing the potential of Africa’s youth and fostering a new era of innovation and prosperity on the continent.

Source: Nairametrics