RWANDA – The Kigali International Financial Centre (KIFC) has announced the launch of the first and only US$50 million Fintech-focused Africa Fund that will be backed by MyGrowthFund Venture Partners.
Domiciled in KIFC, the fund, which will focus on fintech companies with proven technology and operating in Africa, will create proximity on the continent between investments and fintech investment opportunities.
It will also increase African investment in African fintech specially since less than 10% of the private equity investment in 2021 came from the continent. The fund’s objective is to grow the capital to US$120 million.
The high-level expert-led discussions focused on the game-changing role that KIFC is playing in connecting global investors to fintech opportunities across Africa.
Advancements in technology have seen the rise of African based unicorns, particularly in the financial technology space, offering payment or banking solutions. Several of these unicorns have sought out Kigali as a base to consolidate their regional operations.
“70% of the investment deals go to tech-based products and/or services, so attracting fintech oriented investors and creating a thriving fintech ecosystem, which would facilitate scaling up investment across the continent, is of paramount importance to KIFC,” said Nick Barigye, CEO of Rwanda Finance Limited (RFL).
“We are very proud to note that KIFC is one of the preferred financial destinations in Africa – ranking top 5 in the African continent – and one of the top 15 new International Financial Centres (IFCs) to watch according to the Global Financial Centres index,” Nick Barigye, Chief Executive Officer, Rwanda Finance Limited (RFL) said.
“As one of the fastest-growing fintech hubs, KIFC is committed to working in close cooperation across the continent and all over the world to facilitate pan-African investment, provide the highest quality financial services to international investors, and unlock the continent’s enormous potential. UAE is a very important and key market for us and the last few days have been very productive.”
Private equity investments in Africa have doubled during the last decade with fintech receiving close to 60% of the capital. Total capital invested in African FinTech companies grew by US$1.49 billion in 2021 compared to the previous year, setting Africa’s highest FinTech funding year to date at US$2.02 billion.