In order to support the digital transformation of the African continent, Proparco has just taken a stake of 5 millions of dollars inTLCOM TIDE AFRICA FUND, a fund that will finance young innovative companies in sub-Saharan Africa. Thanks to new technologies, these start-ups will improve people’s access to essential services.
Technology for sustainable development
If the penetration rate of SIM cards on the African continent is the only one today that is close to that of Western Europe (70% vs 83%), access rates to essential services are still very far: the rates of electrification, access to health or banking do not exceed 31% in Africa while they amount to more than 90% in Western Europe.
With more than 600 million smartphone users expected in Africa in 2020, the mobile phone is a key development tool that will unlock the access of African people to essential goods and services (energy, health, education, transportation, consumer goods …).
TIDE Africa Fund(“Technology and Innovation for Developing Economies”) was created to support the development of young start-ups in sub-Saharan Africa whose economic model, based on the exploitation of a digital or digital technology, meets a need local market little or not served. These companies will thus make it possible to improve, through new technologies, access to essential goods and services in urban, peri-urban and rural areas.
Accompany the fund from 1erclosing
With an investment of 5 millions of dollars, Proparco’s participation is part of the first round of funding of nearly 40 million, alongside notably the EIB and AfDB. It will allow the fundTIDE Africato meet the financing needs of young African start-ups, as venture capital for these companies is still very little developed in Africa.
With a strong experience in supporting innovative start-ups and a deep knowledge of the start-up ecosystem in Africa, the TLcom team will invest in some fifteen companies under the age of 5, having crossed prototyping and placing on the market, to finance growth and scaling up.
