In a historic move during a special session at the ongoing World Economic Forum in Davos, the United Nations Development Programme (UNDP) has unveiled the “timbuktoo Africa Innovation Fund,” a colossal $1 billion investment aimed at bolstering startups across the African continent.
The initiative, tagged as the world’s largest financing facility for Africa’s startup ecosystem, was presented by key figures including Rwandan President Paul Kagame, Ghana’s President Nana Akufo-Addo, Wamkele Mene from the African Continental Free Trade Area Secretariat, and UNDP Administrator Achim Steiner.
Rwanda took an immediate stride by contributing $3 million to kickstart the “timbuktoo” fund, which will be hosted in Kigali. President Kagame emphasized the importance of providing tools for African youth to unlock their full potential, stating, “With timbuktoo’s billion-dollar target, we can create more opportunities for Africa’s youth to put their talent and creativity to good use.”
President Akufo-Addo of Ghana echoed this sentiment, expressing excitement about creating a future where innovation is encouraged, ingenuity is supported, and prosperity is shared. The initiative aims to address critical gaps in the African startup ecosystem, collaborating with governments, investors, corporates, and universities.
“Timbuktoo is a new model of development. We are gathering key actors to push on all fronts at the same time,” remarked UNDP Administrator Achim Steiner.
The fund seeks to fill gaps in startup-friendly legislation, global-class startup building, and de-risking capital to increase investment. It introduces “UniPods” (University Innovation Pods) across Africa to enhance innovation and benefit people not only on the continent but worldwide.
Africa currently holds just 0.2 per cent of global startup value, compared to 2 per cent of global trade value. The majority of venture capital (89%) flowing into Africa is foreign, concentrated in four countries—Nigeria, Kenya, South Africa, and Egypt—with fintech receiving over 60 per cent of the capital. timbuktoo’s ambition is to mobilize and invest $1 billion to transform 100 million livelihoods and create 10 million new jobs.
The uniqueness of timbuktoo lies in its design, blending commercial and catalytic capital to de-risk private investment.
It adopts a pan-African approach, engaging with government policy, universities, corporates, development partners, catalytic partners, and commercial investors to foster a comprehensive and interconnected startup ecosystem.
The launch marks a significant step in sparking the African Startup Revolution, tapping into the continent’s abundant innovative talent and youthful demographic.
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