The European Investment Bank (EIB) on Wednesday made an equity investment of 30 million U.S. dollars in Seedstars Africa Ventures, a venture capital fund aimed at supporting African entrepreneurs in expanding and fostering creation across the continent.
Edward Claessen, head of the regional hub for East Africa at the EIB, informed journalists in Nairobi, the capital of Kenya, that innovative businesses and startups addressing social problems across Africa would benefit from increased access to risk capital.
“Enhanced capital access will enable companies to grow, generating skilled jobs, and improving products and services for both businesses and consumers,” Claessen said.
Maxime Bouan, a partner at Seedstars Africa Ventures, said that selected companies would receive equity investments ranging between 250,000 dollars and 2 million dollars to expand their operations.
Bouan also noted that small and medium enterprises in Africa encounter difficulties accessing credit from commercial banks due to a lack of collateral to secure loans.
Bruce Nsereko Lule, another partner at Seedstars Africa Ventures, said that equity investments would target African enterprises with the potential to scale operations within countries and across regions.
XINHUA
