AfDB invests $10 million in TIDE Africa Fund to support innovation

17 Nov 2016
Financial Nigeria


TIDE Africa Fund invests exclusively in technology-driven services and innovation in Sub-Saharan Africa.

President, African Development Bank, Akinwumi Adesina

The African Development Bank has approved a $10 million equity investment in Technology and Innovation in Developing Economies (TIDE) Fund I, according to a statement released on Wednesday. The AfDB said its investment in TIDE Africa Fund is aimed at boosting production and growth in Africa as part of a ten-year development strategy for the continent.

“The investment is strongly aligned to the Bank’s Ten Year Strategy (2013-2022) and its High 5 priorities,” the Abidjan-based multilateral lender said.

TIDE Africa Fund invests exclusively in technology-driven services and innovation in Sub-Saharan Africa ranging from agribusiness to financial services, energy, education and healthcare. The Fund, which is designed to generate a 16 per cent net return to investors, will initially invest in Nigeria, Kenya, and Ghana, followed by Ethiopia, Rwanda and Zambia. Incorporated in Mauritius, the Fund has a target size of $100 million as well as a 10-year target life within a 5-year investment period.

“The Fund will support the development of an ecosystem facilitating growth of new technologies and new companies using proven technologies with the following development outcomes: promote the profitability of value-generating companies; stimulate job creation; and increase access and inclusion, including financial service by technologies and innovation,” the AfDB said.

The TIDE Africa Fund is managed by TLcom Capital, a London-based private equity firm with offices in Lagos and Nairobi. Omobola Johnson, a former Nigerian Minister of Communication Technology, is a Partner at TLcom Capital.

“The Manager will also contribute to development outcomes by establishing the TIDE Foundation, a separate non-profit entity to support the development of the local entrepreneurial ecosystem through incubators,” the AfDB said. “Furthermore, 1% of the 20% of carried interest entitled to the General Partner is to be allocated to entrepreneurship education activities in Sub-Saharan Africa.”

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