Ayodeji Ayenuwa
Former Kaduna State governor, Nasir El-Rufai, is gearing up to launch a $100 million venture capital fund, Afri-Venture Capital Company Ltd, with a focus on boosting startups in Nigeria.
Scheduled to commence operations in early 2024 from Abuja, the fund aims to diversify its investments beyond Lagos, with a specific focus on the Kaduna tech ecosystem.
El-Rufai, committed to the cause, plans to contribute $2 million from his personal funds and will serve as the part-time chairman. He aims to leverage his extensive political network to assist startups in navigating regulatory challenges and securing essential funding.
“This initiative is about mentoring and financing for young people to get things going. They develop the idea, and we will open doors for them because they lack contacts. They don’t know or have access to ministers, presidents, or regulatory agencies. We do,” stated El-Rufai, emphasizing the fund’s commitment to providing opportunities for young entrepreneurs.
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The move aligns with ongoing efforts to stimulate development in northern Nigeria. Recently, a $20 million fund, announced by the Kaduna State government, focuses on mentorship and fundraising support for startups in the region.
El-Rufai’s venture capital fund not only targets new startups but also aims to address management challenges in established companies. It takes a percentage of businesses in return for startup funding, aligning with the broader goal of catalyzing growth in supported startups.
Kaduna State’s prior adoption of the Nigerian Startup Act during El-Rufai’s tenure signifies a supportive environment for tech-enabled businesses. The fund’s scope extends beyond Nigeria, recognizing Africa’s potential to play a crucial role in the global workforce by 2050.
“Investing in the younger demographic is critical. We don’t intend to remain in any business. We want to catalyze growth in these startups,” El-Rufai added, expressing his vision for the fund’s impact.
In the context of declining investment sources for African startups, the launch of these funds presents a positive outlook for the region, fostering innovation and contributing to economic growth in Nigeria and beyond.
SOURCE: BusinessDay
Techrectory with Agency Report.
