The United Nations Development Programme (UNDP) has launched a new financing initiative called “timbuktoo” to support African startups. The program, presented at the World Economic Forum in Davos, aims to mobilize $1 billion in catalytic and commercial capital. This initiative was unveiled during a special session at the 24th Annual Meeting of the World Economic Forum, where key African leaders and stakeholders emphasized its importance for the continent’s future.
A Pan-African Approach to Startup Support
Timbuktoo seeks to address critical gaps in Africa’s startup ecosystem by working with governments, investors, corporations, and universities. The initiative will blend commercial and catalytic capital to de-risk private investment, taking a pan-African approach to support startups. This collaborative effort is designed to support an environment where startups can access the necessary resources and networks to scale their operations across the continent. By leveraging both types of capital, timbuktoo aims to reduce the perceived risks associated with investing in African startups, thereby attracting more global and local investors.
According to the UNDP, timbuktoo is positioned to be “the world’s largest financing facility” for African startups. The program’s ambitious goal is to transform 100 million livelihoods and create 10 million new jobs. Rwanda’s President Paul Kagame announced an initial contribution of $3 million to the timbuktoo Africa Innovation Fund, which will be based in Kigali. Kagame’s commitment shows the initiative’s immediate impact and the confidence African leaders have in its potential to drive economic transformation. The fund’s location in Kigali symbolizes Rwanda’s growing role as a hub for innovation and technology in Africa.
Filling Critical Gaps in the Ecosystem
The initiative will focus on the entire startup ecosystem, deepening linkages between government policy, universities, corporations, development partners, and investors. This includes the establishment of UniPods – University Innovation Pods – across Africa. UniPods are envisioned as physical and virtual spaces where students, researchers, and entrepreneurs can collaborate, access resources, and develop innovative solutions to local and global challenges. These pods will serve as incubators for ideas, providing the necessary tools and mentorship to turn concepts into viable businesses.
Ghana’s President Nana Akufo-Addo emphasized the need for proper structures to enable young Africans to create innovative businesses, contributing to job creation and sustainable economic growth. He highlighted that many African countries face the challenge of establishing the right frameworks to support entrepreneurship. UNDP administrator Achim Steiner described timbuktoo as a new model of development, gathering key actors to push on multiple fronts simultaneously. Steiner stressed that timbuktoo is not just about funding but about creating a holistic ecosystem that supports innovation at every stage, from ideation to market entry and beyond.
The program’s launch comes at a time when African startups are gaining global attention, with increasing investment and a growing number of successful ventures. However, challenges such as limited access to funding and supportive infrastructure remain. Despite the progress, many startups still struggle to secure the capital needed to scale their operations. Timbuktoo aims to bridge this gap by providing not only financial resources but also technical assistance and market access. By addressing these systemic issues, the initiative seeks to create a more level playing field for African entrepreneurs.
By addressing these gaps, timbuktoo aims to create a more conducive environment for African startups to thrive, ultimately driving innovation and economic growth across the continent. As Kagame noted, the initiative’s $1 billion target can create opportunities for Africa’s youth to harness their talent and creativity. The success of timbuktoo will be measured not just by the amount of capital mobilized but by the tangible impact it has on the lives of millions of Africans. Through its full approach, timbuktoo has the potential to catalyze a new era of innovation and prosperity in Africa, ensuring that the continent’s young people have the tools and opportunities they need to succeed.
