All eyes are on the African continent. According to the World Bank, most of its inhabitants will be aged under 25 by 2050. It's a young and ambitious population that favors more and more investments in its local environment. Besides, African countries are also increasingly seen as true partners abroad, and foreign entrepreneurs who choose Africa are ready to cooperate with locals to contribute to the region's dynamism. In fact, this is one of the conditions for obtaining a financial grant. Here is an overview of the main types of assistance available to foreign entrepreneurs in Africa.
Aid programs for sustainable investment in Africa
Interest in the African continent has risen again since COVID. One of the reasons for this is the African soil, rich in rare elements, and the continent's many natural resources. However, the aid programs intended for foreign entrepreneurs (see links below) are reserved for sustainable and solidarity-based projects. Therefore, any project set up with the only goal of enriching the foreign investor or entrepreneur doesn't stand a chance. The organizations that grant this type of aid ensure that foreign entrepreneurs create businesses in Africa that, beyond profit, aim mainly at creating jobs, increasing wealth, encouraging women's entrepreneurship, opening up remote communities, or modernizing localities that have been excluded from technological advances.
United States African Development Foundation (USADF)
Perhaps one of the best-known organizations, USADF is a U.S. government agency created in 2014 by Congress for investment in Africa. USADF focuses on projects that contribute to the development of the local economy through small and medium-sized enterprises (SMEs) that create jobs. USADF has several objectives: to energize remote regions, promote women's entrepreneurship, contribute to food independence and security, and invest in sustainable development. Over the past five years, USADF has invested more than $117 million in more than 1,000 small and medium-sized businesses and entrepreneurial projects. The U.S. agency also provides technical support at the practical level.
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The Fab Foundation
Focused on innovation, technology and creation, The Fab Foundation offers entrepreneurs the tools and the necessary environment to launch their projects. The organization relies on networking to stimulate meetings between different creators. Its community (the Fab Laboratories, digital fabrication workshops) brings together scientists, artists, engineers, builders, students, and new technology enthusiasts. It's a worldwide emulation connecting 1750 Fab Laboratories (Fab Labs) in more than 100 countries. To be a member of Fab Labs, any entrepreneur must be open to sharing and collaboration. Projects should be transferable anywhere. This is the philosophy that Fab Foundation defends so that global emulation contributes to the development of all.聽
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The Schwab Foundation
Founded in 1998, the Schwab Foundation is an independent organization that supports social innovators. Far from capitalist excesses, the foundation promotes inclusive projects focused on social and sustainable development. Partner of the World Economic Forum, the Schwab Foundation has supported more than 400 social innovators. Committed creators who have helped improve the lives of 722 million people around the world. The Schwab Foundation selects projects in 3 categories: "Social Entrepreneurs", "Corporate Social Intrapreneurs" and "Public Social Intrapreneurs". A new category will be introduced in 2023: "Collective Social Innovation Award".聽
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Seedstars World
Since 2013, Seedstars World has been supporting entrepreneurs who want to establish themselves in new markets, mainly in Africa, Asia and South America. Its main objective is to encourage the emergence of new Tech hubs, especially in the fields of Internet and mobile telephony. Since its creation, Seedstars World has created 80 high-tech ecosystems, bringing together more than 100,000 people around the world, including 2,000 investors and 40,000 entrepreneurs. These ecosystems have already created more than 2,500 direct jobs and many more indirect jobs. The development of new technologies in Africa, particularly through better network coverage, is encouraging the development of other ecosystems related to the world of Tech, namely in marketing, communication, research, and finance, amongst others.
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WIDU Africa
This organization focuses on the African diaspora living abroad. WIDU Africa was founded on the premise that the African diaspora living in Europe contributes approximately 23 billion dollars per year to family members living on the African continent. However, these funds are mainly used for daily needs, and only a small part is used for business development. WIDU proposes to the African diaspora to send their funds directly to entrepreneurs in Africa. The organization also offers coaching to empower entrepreneurs. It ensures a regular follow-up of the projects, and the money invested helps boost the local economies of African countries.聽
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MEETAfrica
Here is another organization focused on the African diaspora. It originated from the Euro-African Dialogue on Migration and Development in 2006, which brought together the European Commission (EC), the Economic Community of West African States (ECOWAS) and 60 African and European states. MEETAfrica supports business creation projects of the African diaspora trained in France or Germany. The return of these talents is essential for the growth of African countries. The first edition of MEETAfrica was set up between June 2016 and October 2018, with support provided to 80 business creation projects. Based on this success, edition 2 was launched.聽
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There are other support programs for foreigners wishing to start a business in Africa, such as Echoing Green or Global Greengrants Fund. Finding the right organization for your project is an important first step that should not be overlooked. The social mission of the enterprise is also fundamental. As actors of local life, businesses that develop in each African territory are expected to contribute to the economic and social development of the region. The positive effects often go beyond the locality of establishment and become sources of inspiration for other African countries.
