TIDE Africa II Fund
The SDG Frontier Fund has invested USD 2.5 M in equity in the TIDE Africa II Fund, a venture capital fund focusing on technology-enabled services and innovation for Africa.
Amount
$ 2,500,000.00
Type of investment
Equity
Development impacts
- Local economic growth
- Private sector consolidation/innovation
Beneficiary locations
Investment field
Investment Companies & Funds
Activity
The SDG Frontier Fund has invested in the TLcom Technology and Innovation for Developing Economies Africa II Fund (TIDE Africa II Fund), a venture capital fund focusing exclusively on technology-enabled services and innovation for Africa (and predominantly SSA) across all stages of the venture capital cycle.
The fund is the successor to the TIDE Africa Fund, in which BIO has committed USD 5M. Similarly to its predecessor fund, TIDE Africa II will make equity investments into tech-enabled, fast growth enterprises founded by outstanding management teams, serving the African market, with either the potential to scale globally or the ability to profitably serve customers at the base of the economic pyramid, which continue to represent the vast majority of consumer demand in the region and in other developing and emerging economies.
Development impacts
-
Local economic growth
TLcom aims to provide capital funding to innovative companies whose activities improve the conditions of economic agents and individuals across formal and informal sectors. It supports the creation of jobs in the digital sector.
TLcom focuses on highly scalable businesses with strong expansion to multiple African countries, including the least developed countries.
-
Private sector consolidation/innovation
The fund will support the emergence of a digital economy in Africa by enabling the occurrence of recognised success stories on the continent, reinforcing the African VC ecosystem and creating a virtuous innovation cycle.
The fund will support the growth of leading disruptors, that use technology and/or innovative business models to either (i) increase access and affordability to key goods and services for low- and middle-income people (ii) contribute to find innovative solutions to local problems (iii) optimize the value chain and processes in key industries and (iv) leverage local talents.
E&S Impact
TIDE II will
- publish its E&S values on its website,
- review the exclusion list to cover fossil fuels, and
- adapt its ESG questionnaire for clients to widen the scope.
Also, the fund will systematically request a retrenchment plan for collective dismissals at the level of its investees and will share more detailed information for the first investments with the investors.
Situation at the time of investment
The venture capital fund has already adopted an Environmental and Social Management System aligned to the EDFI requirement, covering all the steps of the investment life cycle. Recently, upon request of other EDFI it has widened the scope of its E&S assessment to include gig workers risks and mandatory external E&S due diligence for medium-risk projects with higher risks (i.e. warehouse, agriculture etc.).
Risk Category: B
Other investments by
SDG Frontier Fund
- Uhuru Growth Fund I-A SCP (Equity) $ 2,500,000.00 (2022)
- AfricInvest Financial Inclusion Vehicle (Equity) € 3,200,000.00 (2022)
- Ezdehar Mid-Cap Fund II (Equity) $ 1,700,000.00 (2021)
- Cathay Africinvest Innovation Fund (Equity) € 4,000,000.00 (2021)
- Incofin India Progress Fund (Equity) € 3,500,000.00 (2021)
- Ascent Rift Valley Fund II (Equity) $ 4,000,000.00 (2020)
- African Rivers Fund III (Equity) $ 1,700,000.00 (2020)
- Excelsior Capital Vietnam Partners (Equity) $ 2,200,000.00 (2020)
- South Asia Growth Fund II (Equity) $ 2,200,000.00 (2020)
Read impact and news about this project
News
SDG Frontier Fund Final Closing
29-04-2022
First-of-its-kind Belgian impact fund mobilises additional private resources to support African and Asian SMEs in their growth.
News
Greener money
31-08-2021
Money is getting greener. The superlative in sustainable investing today is "impact investing". A growing global market that is already worth more than $700 billion.
Article originally appeared in MT Magazine in Dutch.
News
Repousser les frontières des investissements durables
15-12-2020
An interview with Luuk Zonneveld, An-Heleen De Greef & Eric Van den Bosch on the SDG Frontier Fund, published in L'Eventail on the 10th of December 2020, written by Cédric Boitte.
This article was published in French.
News
You'll never make the world sustainable with only public money
02-07-2020
Financial return is worth twice as much if it also helps the world move forward. The Belgian government and business world collect 50 million euros for sustainable investments in the African and Asian private sector. "Investing is better than giving," says driving force Alexander De Croo, Minister of Development Cooperation. "You will only see a return on your investment if it has really made a difference."
News
SDG Frontier Fund first closing
02-07-2020
First-of-its-kind Belgian impact fund brings together 9 private investors to support sustainable economic growth in African and Asian frontier markets.
View more of our investments in this region
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Investment Companies & Funds
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Subsidy
Investment Companies & Funds
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Equity
