Sylvia Duruson
In a move aimed at bolstering Africa’s burgeoning technology landscape, the International Finance Corporation (IFC) has announced a $10.5 million investment in a new fund by 4DX Ventures, a New York-based venture capital firm. This strategic partnership seeks to empower early-stage African tech companies across a diverse range of sectors, including fintech, e-commerce, edtech, climate tech, and health tech.
The IFC’s investment will come from its $225 million venture capital platform, which was launched last year with the goal of strengthening emerging venture capital ecosystems and supporting early-stage companies in Africa, the Middle East, Central Asia, and Pakistan. This initiative reflects the growing recognition of the untapped potential in these regions, where venture capital investment has historically been underrepresented, receiving just 2% of global venture deal volume in the third quarter of 2023.
“IFC and 4DX Ventures share the commitment to supporting tech entrepreneurs with innovations that will help Africa leapfrog in critical areas such as climate, health care, fintech, e-commerce, and education,” said Walter Baddoo, Co-Founder and General Partner of 4DX Ventures. “We look forward to partnering with IFC to help promising tech startups build transformative businesses and realize sustainable development impact on the continent.”
The 4DX Ventures Fund III will focus on investing in companies that offer tech-based solutions to improve productivity, efficiency, and competitiveness across Africa. The firm’s previous two funds have already supported notable successes, including investments in Egypt-based e-commerce platform MaxAB, Ghana-based health tech firm mPharma, and Kenya-based B2B e-commerce platform Wasoko.
“By supporting the development of tech ecosystems in emerging markets, IFC’s venture capital platform aims to improve access to key services, boost business competitiveness, and promote job creation through digital transformation,” said Mohamed Gouled, Vice President of Industries at IFC. “Our investment in venture funds such as 4DX Ventures will help African entrepreneurs access more financing and resources they need to scale tech innovations and bolster sustainable growth across the continent.”
Beyond the financial investment, IFC will also work closely with 4DX Ventures to ensure the implementation of robust environmental and social management systems, further demonstrating its commitment to fostering responsible and sustainable growth in the African tech landscape.
This partnership between IFC and 4DX Ventures represents a significant step forward in unlocking the vast potential of Africa’s technology sector. By providing much-needed capital and resources, this collaboration aims to empower a new generation of African tech entrepreneurs, driving innovation and transformative change across the continent.
