(Ecofin Agency) - The investment will be made through the Lofty Alpha Fund, managed by LoftyInc Capital Management. The fund has a target size of $50 million and will be based in the United States.

The International Finance Corporation (IFC) plans to invest $6 million in equity in a pan-African fixed-capital venture fund aimed at early-stage technology companies across various sectors on the continent. This initiative was recently announced by the institution.

Named the “Lofty Alpha Fund” and managed by Nigerian venture capital firm LoftyInc Capital Management, the fund will primarily finance young tech startups throughout Africa. Its goal is to improve their access to venture capital funding, drive innovation, and support technological development in Africa by providing financial resources and guidance to startups in their early stages.

In addition to funding, IFC will share its knowledge and network in Africa with the fund’s manager and support capacity-building programs dedicated to startups. The organization will also provide environmental, social, and governance (ESG) support to help manage the environmental risks associated with investments.

This funding, which will be subject to approval by IFC’s board of directors on February 17, 2025, comes amid a challenging fundraising environment marked by a decline in venture capital investments in Africa. According to Africa: The Big Deal, a leading newsletter on African startup investments, African startups raised $2.2 billion in 2024, a 25% drop compared to the $2.9 billion raised in 2023.