January 23

Why International DFIs Are Looking To African Startups to Scale Impact Investing Efforts

By Annie Njanja

Even as VC funding dries up across the world, development finance institutions (DFIs) are looking to African startups to deploy their dry powder.

British International Investment (BII), a DFI from the UK, told TechCrunch recently that it will deploy $500 million into startups by the end of 2026, and half of that amount has been earmarked for African tech companies. In addition to backing VC funds in the region, the organization aims to make more direct equity investments in startups, adding to the four African companies it invested in last year.

Photo courtesy of Cytonn Photography.

Source: TechCrunch (link opens in a new window)

development finance, impact investing, startups, venture capital