Japan International Cooperation Agency Invests in African Startups through Partnership with Novastar Ventures

Strategic Insights -

Japan International Cooperation Agency (JICA) has joined forces with Novastar Ventures Limited (NV) to support African startups through investments in NV's Fund III. This partnership aims to empower people through economic and social inclusion, promote sustainable/climate-positive economic activities, and contribute to economic development and addressing social challenges in Africa. The investment will enable JICA to co-invest with British International Investment and other development finance institutions, as well as financial and strategic investors, including Japanese corporates. This initiative aligns with JICA's goals of promoting economic growth, reducing inequalities, and addressing climate action in Africa.

Key Takeaways:

  • JICA has signed an agreement with Novastar Ventures Limited (NV) to invest in NV's Fund III, with a committed amount of 10 million USD.
  • The project aims to finance startups engaged in impactful businesses in Africa, promoting sustainable/climate-positive economic activities and contributing to economic development and addressing social challenges in the region.
  • The investment will enable JICA to co-invest with British International Investment and other development finance institutions, as well as financial and strategic investors, including Japanese corporates.
  • The project will support Goal 5 (Gender equality), Goal 8 (Decent work and economic growth), Goal 9 (Industry, innovation and infrastructure), Goal 10 (Reduced inequalities), Goal 13 (Climate action), and Goal 17 (Partnerships for the goals) of the United Nations' Sustainable Development Goals (SDGs).
  • The project component involves using proceeds as capital to invest in African startups by NV III.
  • The partnership between JICA and NV is a significant step towards promoting economic growth and reducing inequalities in Africa.

Statistics:

  • Committed amount: 10 million USD
  • Target areas: Africa
  • Project component: Investing in African startups via NV II
  • SDG Goals: Goal 5 (Gender equality), Goal 8 (Decent work and economic growth), Goal 9 (Industry, innovation and infrastructure), Goal 10 (Reduced inequalities), Goal 13 (Climate action), and Goal 17 (Partnerships for the goals)

Sources:

  • Japan International Cooperation Agency (2023). Press Release: JICA Signs Agreement with Novastar Ventures Limited (NV) for Investment in Fund III.