Germany launches DeveloPPP Ventures to invest in Kenya’s start-up ecosystem
Germany’s Federal Development Ministry (BMZ), together with Seedstars and NaiLab, is launching an entrepreneurial support program, DeveloPPP Ventures, that will avail grant of up to €100,000 to start-ups in Kenya.
Via a matching-funds model, Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) provides grant financing for growth investments of start-ups that have achieved a proof of concept and are ready to scale.
Development Minister Gerd Müller said: “Many developing countries, particularly in Africa, have an exciting start-up scene. This is where the jobs of tomorrow and innovative solutions for the challenges on the ground are emerging. Drones being used to deliver medicines, banks that are completely digital – things which sound like the music of the future to European ears – many African companies are already making these ideas a reality.”
“We want to encourage this entrepreneurial spirit even more, thereby helping to create modern jobs for young people. Since the launch of our DeveloPPP program, more than 2,000 projects have been realised around the world, together with local, German and European companies. Last year alone, almost 80,000 people received initial and further training thanks to this support,” Müller continued.
The DeveloPPP Ventures serves as a new pillar that the BMZ has added to its support portfolio. With the support of impact investment specialist Seedstars and business incubator NaiLab, the program is aimed at young entrepreneurs who are making innovative contributions to sustainable development in their developing economies as well as improving living conditions of the locals.
The program is open to start-ups with their head office or with a branch registered in Kenya. They can receive a grant of up to €100,000 for their planned growth investment.
Among the conditions that applicants must fulfill is that they need to already be generating some initial turnover with their product and that they can acquire matching funds from other sources of at least the same amount.
In addition, start-ups will receive tailored support from technical experts for their growth journey.
DeveloPPP Ventures will initially launch in Kenya, with the first call for proposals opening on 26 May 2021 and closing 15 July 2021.
The new program is intended to be rolled out to other countries after Kenya.