Closing Africa’s Digital Gap
While venture capital continues to concentrate in a few hubs across Africa—primarily Egypt, Kenya, Nigeria, and South Africa—a new fund is seeking to redirect investment toward underserved markets. The Botswana Tech Fund has launched with £10 million ($13.5 million) in committed capital, aiming to spur digital transformation in Southern African nations like Zambia, Namibia, Mozambique, Angola, and Zimbabwe.
Addressing Market Imbalance
The fund’s founders, Martin Davis and Florence Bavanandan, point to a significant “digital gap” where these markets receive less than 20% of the continent’s venture funding despite housing tens of millions of consumers. They argue that true growth requires capital deployed at the source, not filtered through established ecosystems in South Africa or elsewhere.
Davis explains: “We’re focused on the critical core markets where digitisation has been slow but inevitable. By accelerating technology adoption across these economies, we can create opportunities for people to stay and build their futures here.” The fund’s thesis centers on helping close this gap by providing targeted investment at various stages—from pre-seed acceleration to growth equity and secondary market transactions.
Multi-Stage Investment Approach
The Botswana Tech Fund employs a three-pronged strategy:
- Pre-seed accelerator: Deploying £100,000 ($135,000) cheques to approximately 100 Southern African startups over five years
- Primary growth investments: Ranging from £500,000 ($670,000) to £2 million ($2.7 million)
- Secondary market purchases: Acquiring stakes in companies with established traction across the continent
With backing from British billionaire Stephen Lansdown and anchored out of Botswana, the fund seeks to build a more inclusive African tech landscape where innovation can flourish beyond traditional investment hotspots.