Innovative Capital Mobilisation in Africa (ICAMA)

Context

For African start-ups and firms with significant growth potential, access to capital is limited and often unevenly distributed. The share of global venture capital invested in them is just one percent. Women-led companies often find it particularly difficult to attract investors. However, young companies can offer innovative solutions to local and global problems like climate change and tap into growing economic sectors such as artificial intelligence.

The challenges lie in the terms and conditions offered by financiers, limited exit opportunities for equity investors, exchange rate fluctuations, and knowledge gaps among investors. In addition, the processes for fund managers and venture studios to raise capital are lengthy, expensive, and poorly standardised.

Objective

Additional capital has been mobilised for start-ups and growth firms in Africa, promoting innovation and growth and creating jobs.

Approach

Based on two studies, the initiative presents challenges and promising models with regard to mobilising capital, and outlines the necessary regulatory and political framework conditions.

Together with partners from the private sector, foundations, and the public sector, the initiative designs, structures, and scales five investment models. It incorporates blended finance models that combine public and private capital. This reduces the risks for investors and makes investments economically viable for private capital providers. By actively involving women, the initiative develops new solutions tailored to this group.

It also facilitates collaboration between investors, fund managers, companies, and institutions through innovation workshops and networking events to mobilise additional capital.