Signature(s)
Summary sheet
- Services - Financial and insurance activities
The operation consists of an equity participation of up to USD 20m into Seedstars Africa Ventures, a closed-ended venture capital fund focusing on Sub-Saharan Africa (primarily West and East Africa) and to a lesser extent on North Africa. The fund focuses on investments into high-growth small and medium sized enterprises (SMEs) leveraging digital technologies to deliver services across sectors.
The aim is to support the creation of jobs, digitalisation and the private sector development, by increasing access to risk capital to local high-growth SMEs. The fund will invest into a diversified portfolio of companies, supporting the value creation of the underlying investees through a hands-on management approach, as well as enhancing the ESG standards.
Through this operation, the EIB will be able to support a first-time team launching its first fund targeting investments in SMEs in Africa, with a primary focus on Sub-Saharan Africa. By enhancing access to much needed risk capital to support start-ups and growth SMEs the project is expected to promote economic growth and private sector development, stimulate job creation, encourage local young entrepreneurs supporting solutions with high level of scalability and reduce poverty across targeted African economies. Access to finance - in particular equity finance - and managerial advice are among the most prevalent barriers for the growth of small and mid-sized companies. The provision of growth capital and managerial support through private equity funds has proven an effective strategy to overcome this market failure.
The project will not have relevant negative environmental and social impacts. On contrary, some investments may result in positive environmental and social impacts.
With the EIB commitment, the Fund's terms are expected to be negotiated in line with market practice standards. Additionally, the EIB's involvement is anticipated to support the fundraising and catalyse other investors in a challenging fund raising environment that has been exacerbated by the impact of the Covid-19 pandemic and the conflict in Ukraine.
The Fund will operate in line with the EIB's environmental and social standards.
N/A
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).
Documents
News & Stories
General enquiries and comments
The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.
Media enquiries
Media-related enquiries can be addressed to the EIB Press Office. Please also visit our Media information section.
Complaints mechanism
Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.
Zero tolerance against fraud and corruption
The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.
Related publications