Prior to COVID19, Sub-Saharan Africa had the highest number of people starting new businesses (22% of the population) and the world’s highest percentage of youth in new and nascent business. In a post-COVID world these numbers are expected to climb.
A main driver is that young Africans see entrepreneurship as a viable opportunity in comparison to the depressed formal job market. This year the African Development Bank estimates between 24 and 30 million Africans will lose their jobs because of the pandemic, adding to 619 million already living in poverty. These effects could be crippling, but many are hopeful that these constraints can lead to innovation.
This innovation and agility is already recognized by both investors and entrepreneurs alike. A recent survey by Intellecap Advisory Services cited that “nearly 15% of investor respondents noted that some of their portfolio companies had been able to adapt – and even thrive – during this period.” Similarly, Fred Swaniker, a Ghanaian entrepreneur and leadership expert has shared that with a generation of young entrepreneurs already working across the continent to develop new and innovative enterprises in the face of hardship, he believes that “if we imagine how we live and do business on the continent, we can actually turn this into an opportunity and not a crisis.”
As the continent is forced to get even more creative in embracing the digital economy and harness entrepreneurship in the face of unemployment, funding and mentorship for startups is now more important than ever. The following list compiles a variety of funding, networking and educational programs specifically designed to invigorate the African entrepreneurial ecosystem during COVID times and beyond.
Funding Relief during COVID
- Vital Impact Relief Facility — COVID-19 Debt Fund ($1M): Vital Capital is a leading impact investment, private equity fund that aims to benefit millions of people in low and middle-income communities. They are providing ten $1M loans to target companies involved in agro-industry and processing, healthcare, sustainable infrastructure and education. It initially launched in Kenya and Uganda and will then expand into Vital’s target geographies including Ghana, Democratic Republic of Congo, Ivory Coast, Angola and Senegal.
- MEST Africa Challenge – $50K Equity: An African tech startup pitch competition that offers $50K to early-stage companies based in Ghana, Nigeria, Kenya, South Africa, Côte d’Ivoire, Sénégal, Rwanda, Ethiopia, and Tanzania. The application is due April/May 2021.
- Open Road COVID19’s Grants & Loans $50K-$1M : This mechanism offers loans and grants to social enterprises that are otherwise fully funded but have hit significant roadblocks due to COVID19. Applications accepted on a rolling basis.
- IIX Emergency Financing Facility: A revolving facility providing refundable grants and working capital loans to select high-impact SMEs. Email for more information.
- Village Capital Investor Consortium – COVID19 Pipeline : Sorenson Impact Foundation and Village Capital have put together a consortium of investors actively looking to provide capital and other forms of support to entrepreneurs addressing the global health and economic crisis tied to the COVID-19 pandemic. Applications accepted on a rolling basis.
- Covidcap.com – Covidcap.com is a COVID-19 capital relief resource for entrepreneurs everywhere. It is run by the Center for the Advancement of Social Entrepreneurship (CASE) at Duke University’s Fuqua School of Business. Review their database of grants, loans, and other cash equivalents that can help entrepreneurs, nonprofits, and businesses anywhere in the world.
Ongoing Funding, Networking & Capacity Building Programs
- African Business Heroes: The Africa Netpreneur Prize Initiative (ANPI) is the Jack Ma Foundation’s flagship philanthropic entrepreneur program in Africa. The Foundation is a charity owned by Jack Ma, the Chinese businessman and founder of the e-commerce giant Alibaba. It aims to identify, spotlight and support African entrepreneur heroes creating impact in their communities and building a more inclusive economy for the future. Multiple prizes are awarded including grants up to $300K, an immersion program into China’s digital economy and recognition on television program. Applications due in June 2021.
- Future Africa: Future Africa is a platform connecting mission-driven innovators and investors looking to turn Africa’s most difficult challenges into global business opportunities. They work to provide capital, coaching, and networking opportunities to early-stage startups solving problems in technology & talent, media, infrastructure, and the environment. Email for more information.
- Johnson & Johnson Africa Innovation Challenge: A continent-wide competition looking to drive entrepreneurship and help advance promising health care solutions Chosen applicants will receive funding up to US $50,000 and technical mentoring from some of the brightest minds at Johnson & Johnson to help bring their idea to life and create meaningful change in their community or country. Application to reopen in 2021.
- Segal Family Foundation Visionary Fellowship: Since 2017, the African Visionary Fellowship offers capacity building designed for and by local African visionaries. Fellows receive mentorship, exposure, and the support of a community of like-minded changemakers. twenty-five fellows are chosen each year. The 2021 application process has not been announced.
- Stanford Seed Transformation Program: A one-year leadership program by Stanford Business School to bring expertise and resources from Silicon Valley to West, East and Southern Africa. African business leaders of companies with an annual revenue over $150K are challenged to assess their company’s vision, redefine strategies, and make ambitious changes toward exponential growth that will drive impact through their products, services and job creation. The cost is $6K with opportunities for scholarships.
- The Miller Center for Social Entrepreneurship: Social impact accelerator programs that provide executive mentorship and a customizable curriculum, featuring their Global Social Benefit Institute (GSBI®) methodology. The Women’s Economic Empowerment Accelerator is currently taking applications until December 1, 2020.
- Echoing Green Fellowship: A highly competitive two year fellowship for social entrepreneurs that provides leadership development, seed resources and lifelong support. Application for 2021 has not been announced.
- Resolution Project: Collaborative social entrepreneurship programs focused on youth leadership development through Social Venture Challenges and Resolution Fellowships. The application process includes multi-stage competitions, combining web-based submissions and live rounds of presentations.
- Builders of Africa’s Future Program – An African Diaspora Network program for entrepreneurs running early stage for-profit and non-profits that are addressing Africa’s unique needs (health, education, energy, financial inclusion, gender inclusion, nutrition, commerce, industrial development) through technology or differentiated business models.
- Harambeans – Harambeans are an elite network of African innovators and founders who work together as visionaries to challenge Africa’s challenges into opportunities. Cohorts of thirty are admitted into the Harambe Entrepreneur Alliance each year.
- SOCAP Scholarship Program: Every year, Social Impact Markets offers scholarships to promising social entrepreneurs to attend the social impact investment conference in San Francisco. Scholars will get a free SOCAP full conference pass, hostel accommodations, participate in the Impact Accelerator – a pre-conference program just for entrepreneurs, receive recognition and high visibility and get mentorship from experienced social impact leaders. In 2020, this conference was held digitally and offered scholars a range of innovative tools to access investors and training. 2021 applications are due by July 2021.
- The Mastercard Foundation Scholars – As part of their goal to enable 30 million young people in Africa to secure employment they see as dignified and fulfilling by 2030, the Mastercard Foundation’s Young Africa Works program aims to foster a cohort of next-generation leaders through their scholars program who will contribute to social transformation and economic growth on the continent. This program is for graduate students to get funding for tuition to study in the US and access to mentorship and transformative events.
