SOUTH AFRICA – Empire Partner Foundation’s (EPF) Tech Fund, has announced the launch of a US$11 million Exchange-Traded Fund (ETF) aimed at fostering innovation and supporting young entrepreneurs across Africa.
The fund, which initially focused on South Africa, is now expanding its reach to identify and invest in high-growth digital startups addressing critical challenges in various sectors.
The EPF Tech Fund aims to tackle difficulties in areas such as accommodation, education, financial inclusion, rural and community development.
The expansion comes at a crucial time for African startups facing a funding freeze, as reported by global research firm Infomineo. Startups in Africa received US$3.4 billion in funding in 2023, marking a 32% decline from the over US$5 billion recorded in 2022, with equity funding experiencing a significant 60% reduction.
To address the funding challenges faced by entrepreneurs in Africa, the EPF Tech Fund is raising an additional US$4.2 million (R80 million).
Empire Partner Foundation CEO Jacqueline Govender revealed that this capital injection will specifically target students and graduates developing technology solutions with the potential for a significant impact.
To be eligible for support from the EPF Tech Fund, startups must have locally built digital solutions, be led by young people, and demonstrate scalability across multiple African countries. Govender emphasized that artificial intelligence (AI) is a key focus for the fund, stating, “Every portfolio firm must achieve the basic criteria of adopting AI into its operations.”
“We see enormous potential in AI-powered solutions that address social concerns, such as education, climate change, unemployment, poverty, and access to healthcare,” Govender added.
The EPF Tech Fund is actively seeking firms that utilize AI for sustainable livelihoods, financial inclusion tools, and data-driven healthcare and environmental, social, and governance (ESG) systems.
The fund was initially created to support breakthrough tech businesses solving social concerns across the African continent. Investors in the fund are organizations dedicated to “future proofing Africa” by investing in youth-led technology solutions that can scale across the continent.
Unlike traditional venture capitalists, the EPF Tech Fund evaluates firms not only based on financial returns but also on their ability to provide verifiable social and environmental benefits.
The fund supports its portfolio companies with mentorship, market access, and impact measurement tools.
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