The African Intellectual Property Organization (OAPI) and the African Guarantee Fund (AGF) have recently announced a groundbreaking $69 million innovation fund to support DeepTech ventures in Francophone Africa. This fund aims to finance 1,000 innovation-driven projects over the next five years across OAPI’s 17 member countries.
The primary goal of this initiative is to provide financial and technical support to startups and SMEs in key areas such as artificial intelligence, biotechnology, advanced manufacturing, and clean energy. AGF will offer credit guarantees to improve access to bank loans, along with mentorship and commercialization assistance for patented innovations.
Denis Bohoussou, OAPI’s Director General, emphasized the comprehensive approach of this fund, which addresses long-standing issues in scaling African innovation. He stated, “This new approach combines financing, technical assistance, and industrial partnerships to create a sustainable ecosystem.”
Under the agreement, OAPI will invest CFA 5 billion ($8.6 million) in AGF, making it the second African shareholder after the African Development Bank (AfDB). AGF’s CEO, Jules Ngankam, highlighted the diverse backing of the fund, with support from non-African entities such as Denmark, France, Germany, and the U.S.
The fund will function by focusing on high-impact DeepTech projects, offering guaranteed loans to mitigate lender risk, mentorship to guide startups through business development, connections with manufacturers and investors, and customized mentorship throughout the project lifecycle. The first application call is expected to be announced in Q3 2025, targeting 200 projects in its inaugural year.
In a continent where converting research into market-ready products remains a challenge, the OAPI-AGF fund is seen as a crucial step towards closing the innovation gap in Francophone Africa. Access to risk capital is a significant hurdle for DeepTech startups across the continent, and this fund has the potential to catalyze a new wave of scalable solutions.
However, the fund also faces challenges such as bureaucratic delays and inconsistent banking infrastructure across OAPI’s member states like Senegal, Ivory Coast, and Cameroon. Success will depend on efficient fund disbursement and effective public-private coordination.
Overall, this initiative demonstrates a growing institutional interest in Africa’s DeepTech potential. By providing funding to the right innovators, the fund could play a pivotal role in driving innovation and economic growth in Francophone Africa.
