Tony Elumelu Foundation unveils $100m fund to drive start-ups

In a bid to empower thousands of Nigerian and African entrepreneurs who have great business ideas but do not have sufficient liquid capital to take their businesses to the next level, Tony Elumelu Foundation has launched $100 million pan-African entrepreneurship initiative to grow 10,000 start-ups and young businesses from across Africa over the next ten years.
The fund is geared towards creating one million new jobs across the 54 countries in the continent, while adding $10 billion in the continent’s annual revenues. The programme is the first initiative of this kind to be launched by an African philanthropic organisation.
Tony Elumelu, founder of the foundation, said the fund is inspired by the fact that he has always sought ways to help inspire a generation across African continent, stressing that the programme brings together his own entrepreneurial experience and belief that it is entrepreneurs that will lead Africa’s development and transform its future.
“I have had the opportunity to meet hundreds of entrepreneurs who have good businesses, can spot unique opportunities and tap into strong networks,” he said on Monday, during the launch of the fund in Lagos.
“These are people who can fuel our future, but I have discovered many of them often lack capital. This Foundation will offer a structured, multi-year opportunity to access funding, knowledge and most importantly mentoring on a scale that is unprecedented in Africa,” Elumelu added.
The fund is open to all entrepreneurs across Africa, irrespective of gender, age and language. It involves two rounds of funding: first, an initial $5,000 non-refundable seed capital investment, which indicates that the entrepreneur is not expected to repay. After this stage, comes the next, involving another $5,000, which will be given to the entrepreneur as a loan or equity, BusinessDay gathered.
But there are selection criteria. The business idea must be feasible-compelling and commercially viable-; it must have market potential, and financial module. Furthermore, there must be skill-ability in the entrepreneur, who also must possess leadership qualities.
“Whether you are in Lagos, Accra, Johannesburg, Nairobi or Dakar, Africa is buzzing with entrepreneurs who need a platform that enables them to take their business or idea to the next level. The Foundation has been designed to provide that mechanism,” said Parminder Vir, director of entrepreneurship at the foundation. The programme is structured in such a way that a committee of African business leaders will select the most promising 1,000 start-ups annually across the continent. Selected entrepreneurs will be provided with experienced mentors who will guide them. While application begins on January 1, 2015, the selection process begins in March.
Wiebe Boer, CEO, Tony Elumelu Foundation, said entrepreneurship is booming in the continent, stressing that the programme is aimed at institutionalising luck and giving entrepreneurs the kind of opportunity the founder, Tony Elumelu, had.