NAIROBI, Kenya- Tech startups across Africa are set to receive a financial boost, thanks to 54 Collective’s venture capital initiative.
Over the next five years, African entrepreneurs will gain access to up to $500,000 in equity, catalytic capital, and non-dilutive funding.
This initiative aims to spur growth, promote financial inclusivity, and empower more women-led businesses across the continent.
The 54 Collective, a Pan-African investment firm, is determined to make a significant impact by offering up to $250,000 in equity funding to eligible startups.
On top of that, low-interest loans—up to $150,000—will be made available, with a key focus on partnering with African-based investors. Bongani Sithole, the CEO of 54 Collective, emphasized their dedication to investing in all 54 African countries.
“Over the next five years, we are targeting 105 investments across Africa, and we’re making it a priority to ensure parity, particularly with women-owned businesses,” said Sithole.
This emphasis on inclusivity is part of a broader strategy to foster an entrepreneurial ecosystem that not only fuels business growth but also addresses the gender gap in access to capital.
Entrepreneurs can benefit from both equity capital and loan options, providing essential financial support to tech-enabled startups in fields such as fintech, health tech, agritech, logistics, and e-commerce.
A key aspect of 54 Collective’s mission is supporting women-led ventures, with a target to allocate at least 50pc of funding to female entrepreneurs.
This initiative is driven by the firm’s belief in equal access to capital for all genders. Eunice Wambui, the firm’s investment principal, highlighted the importance of this shift, explaining that they aim to move from 45pc to 50pc funding for women-owned businesses.
“Talent is distributed equally, but when you look at business funding, that’s not the case,” Wambui remarked. “We want to provide women with a fair chance at growing their businesses by offering $250,000 in equity at 5pc and an additional $150,000 loan at a 2.5pc interest rate.”
This focus on female entrepreneurship aims to help close the gender gap and ensure that more women across Africa have access to the resources they need to succeed.
Kenya has been a key market for 54 Collective, receiving around $6 million in funding since 2018. Sithole reiterated the firm’s bullish outlook on Kenya’s startup ecosystem, with 25pc of their total investments going into the country.
“We’ve built strong local partnerships to understand the business environment intimately. Our investment strategy is deeply rooted in collaboration with local entrepreneurs and African-based investors,” Sithole stated.
The company has also expanded its reach, partnering with businesses in eight African countries, including South Africa, Egypt, Nigeria, Kenya, and Senegal.
In addition to its financial initiatives, 54 Collective plans to support young entrepreneurs through its entrepreneurship academy.
The 12-week Business Support Accelerator program will provide essential tools to help budding entrepreneurs turn ideas into scalable businesses.
