• Senegal launched the $50 million Catalyst DER/FJ fund to finance innovative startups at the pre-seed and seed stages.
• The initiative aims to address a persistent funding gap that limits the growth of early-stage companies in Francophone West Africa.
• Seed financing accounts for only 1.5% of total startup capital raised in Africa, according to data from Africa: The Big Deal.

Senegal's Rapid Entrepreneurship Delegation for Women and Youth (DER/FJ) announced the creation of the Catalyst DER/FJ fund in Paris on June 20. The investment vehicle will deploy $50 million to finance innovative Senegalese startups operating at the pre-seed and seed stages.

Aida Mbodji, General Delegate of DER/FJ, announced the initiative during a keynote address on the AfricaTech stage at VivaTech 2026. Her presentation, titled "Bridging the Pre-Seed Funding Gap in Francophone West Africa: How Institutional Capital Builds the Next African Unicorns," highlighted a longstanding weakness in the region's venture capital ecosystem.

DER/FJ's assessment aligns with the conclusions of industry experts. While record fundraising rounds continue to attract attention across Africa, financing at the earliest stages of startup development remains the weakest segment of the investment chain.

Data compiled by Africa: The Big Deal confirms the imbalance. Seed-stage financing represents only 1.5% of total capital invested across Africa, a share that remains three to four times lower than the 4% to 6% typically recorded in the United States.

Consequently, many startups struggle to secure funding when founders are still building teams, validating business models and developing prototypes.

Against this backdrop, Grégoire de Padirac, Chief Executive Officer of Digital Africa, part of the AFD-Proparco group, recently underscored the importance of seed financing in an opinion piece. "Seed financing remains the cornerstone of African innovation, yet it is often overshadowed by massive fundraising rounds," he said. He added that entrepreneurs frequently face a shortage of capital precisely when teams remain incomplete and products remain at an early development stage.

Senegal's initiative seeks to address that challenge by mobilizing public resources to attract private investment, generate a leverage effect and strengthen the competitiveness of the country's startup ecosystem.

Following the official launch of the fund, five startups accompanying the Senegalese delegation—Andakia, Baamtu, SenITI, FAJMA and Absar—presented their solutions during a pitching session attended by international investors and strategic partners. The presentations provided a snapshot of Senegal's innovation pipeline and highlighted the types of ventures that could benefit from expanded access to early-stage capital through the new Catalyst DER/FJ fund.