According to GreenTec Capital Partners, the needs of Start-ups, MSMEs and SMEs in Africa today revolve around a balanced combination of financing and operational support.
“The entrepreneurial boom and the entrepreneurial spirit on the African continent are primarily supported by the growth of new ecosystem stakeholders such as incubators, hubs, and accelerators. This momentum is nevertheless hindered by the systemic operational deficiencies that still exist within the ecosystem today. Additionally, the Start-ups are most often not well prepared to use conventional financing vehicles such as venture capital,” the investment firm said in a recent statement.
The agreement was signed by the Minister Delegate for Entrepreneurship, Papa Amadou Sarr, and the CEO and co-founder of the German investment company, GreenTec Capital Partners, Erick Yong, joining the mutual ambitions of the two entities to the benefit of young Senegalese entrepreneurs by:
The joint initiative will enable entrepreneurs with high potential to get better access the support they need to grow. Accessing support in the form of personalized operational assistance will create value for entrepreneurs who have matured past the phase in which incubators and accelerators have added value. This will help to further improve the quality of Start-ups and improve their chances of success.
The guiding principle of this initiative is that Africa must not be a passive observer of its own development, but an active player that invests resources and co-designs the agenda of development.
It is in line with the political will of Senegalese President, Macky Sall that the Republic of Senegal has decided to integrate the venture building model developed by GreenTec Capital with the coordination of DER. The DER, created in 2017 and operational since March 2018, has been provided with a budget of $5 million per year, until 2023 to achieve these goals.
Over the last four years, GreenTec Capital’s investment model has already proven successful in 10 African countries – 4 of them in Francophone Africa, among them Rwanda, Nigeria, Ivory Coast, Benin, and several others. Now this model will be implemented in Senegal contributing to a new investment ecosystem adapted to the structural specificities of entrepreneurship on the African continent.
GreenTec has affirmed that due to its high adaptation to the African context, the innovative investment model is scalable across the continent.