IFC's equity investment indirectly supports the least financed African startups. This comes amid a 36% plunge in funding raised by African startups in 2023, to $3.2 billion.

International Finance Corporation (IFC) disclosed yesterday, a $10.5 million investment in the 4DX Ventures fund, which supports African tech companies. This investment was facilitated by a new platform launched by the IFC in November 2022, designed to bolster venture capital ecosystems in Africa, the Middle East, Central Asia, and Pakistan.

“By supporting the development of tech ecosystems in emerging markets, IFC's venture capital platform aims to improve access to key services, boost business competitiveness, and promote job creation through digital transformation,” stated Mohamed Gouled, IFC’s Vice President of Industries.

The investment in the 4DX Ventures fund aligns with IFC’s commitment to backing tech entrepreneurs whose innovations are poised to propel Africa forward in key sectors such as climate, healthcare, fintech, e-commerce, and education.

This move comes amid a 36% decrease in fundraising by African startups in 2023, dropping to $3.2 billion, according to research firm TechCabal Insights. IFC data indicates that Africa is among the regions least served by venture capital, receiving a mere 2% of the global venture capital deal volume in the third quarter of 2023.

This investment is expected to provide further support to African startups, aiding promising tech startups in building transformative businesses and making a lasting impact on the continent’s development.

Samira Njoya