IFC Invests $10.5 Million in 4DX Ventures to Boost Tech Innovation in Africa

In a bid to catalyze innovation and entrepreneurship in Africa’s burgeoning tech ecosystem, the International Finance Corporation (IFC) has announced a $10.5 million investment in 4DX Ventures, a New York-based venture capital firm specializing in early-stage African technology companies.

The investment, facilitated through IFC’s $225 million venture capital platform launched last year, underscores a concerted effort to strengthen emerging VC ecosystems and support early-stage companies across Africa, the Middle East, Central Asia, and Pakistan.

Despite the continent’s immense potential, Africa remains significantly underserved by venture capital, receiving only 2% of global venture deal volume in the third quarter of 2023. The lack of access to capital has been further exacerbated by a slowdown in global venture capital investment, hindering the growth of tech ecosystems beyond established markets like Egypt, Kenya, Nigeria, Senegal, and South Africa.

Walter Baddoo, Co-Founder and General Partner of 4DX Ventures, emphasized the shared commitment between IFC and 4DX Ventures to empower tech entrepreneurs driving innovation in critical sectors such as climate, healthcare, fintech, e-commerce, and education. Baddoo expressed enthusiasm for the partnership with IFC, highlighting the potential to support promising tech startups in building transformative businesses and driving sustainable development impact across the continent.

4DX Ventures’ new fund, supported by IFC’s investment, will target companies offering tech solutions that enhance productivity, efficiency, and competitiveness across Africa. The firm’s previous funds have invested in notable ventures such as Egypt-based e-commerce platform MaxAB, Ghana-based health tech firm mPharma, and Kenya-based B2B e-commerce platform Wasoko (formerly Sokowatch).

Mohamed Gouled, Vice President of Industries at IFC, emphasized the broader objectives of IFC’s venture capital platform, including improving access to essential services, enhancing business competitiveness, and fostering job creation through digital transformation. Gouled noted that investments in venture funds like 4DX Ventures would enable African entrepreneurs to access the financing and resources needed to scale tech innovations and drive sustainable growth across the continent.

In addition to providing capital, IFC will collaborate with 4DX Ventures to implement an environmental and social management system, underscoring a commitment to responsible investment practices and sustainable development.