Village Capital has unveiled a $4 million investment fund aimed at addressing economic mobility and climate resilience challenges in Africa.
This initiative, known as the Africa Ecosystem Catalysts Facility (AECF), is being rolled out in partnership with the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO).
Rather than imposing external models, Village Capital is embedding local entrepreneur support organisations (ESOs) directly into the investment process.
These ESOs, Reach for Change in Ghana, Africa Fintech Foundry and Fate Foundation in Nigeria, and Anza Entrepreneurs and Ennovate Ventures in Tanzania, are now recognised as venture partners under the AECF programme.
“This isn’t just about sourcing deals, it’s about making smarter, more informed investments by working alongside those already building and strengthening their entrepreneurial communities,” said Nathaly Botero, innovations manager at Village Capital.
The model relies heavily on the insider knowledge of these organisations, giving them a central role in identifying, evaluating, and co-investing in startups. By placing ESOs at the core of decision-making, Village Capital aims to overcome one of the biggest barriers African startups face, limited access to early-stage capital.
Less than 3% of global venture capital reaches the African continent, and many promising ventures never scale due to rigid investor frameworks, lack of tailored support, and high perceived risks. The AECF seeks to change that by leveraging local networks to find and support businesses that are often ignored by international funders.
The fund prioritises startups working in agritech, clean energy, the circular economy, and digital finance solutions. These areas are seen as essential for promoting financial inclusion and sustainable development, particularly among women and youth-led ventures.
This isn’t Village Capital’s first investment in Africa. In 2024, it committed $850,000 to two agritech firms, Kenya’s Aquarech and Nigeria’s Coamana, both tackling critical issues in food security and supply chain inefficiencies. Since its founding in 2009, Village Capital has helped over 1,800 startups secure upwards of $7 billion in follow-on capital.
Backing from FMO and RVO strengthens the AECF’s impact ambitions. FMO brings its expertise in market creation and impact investing, while RVO contributes its experience supporting youth entrepreneurship and ecosystem building across emerging markets.
The AECF also builds on Orange Corners Innovation Fund (OCIF), another initiative driving startup growth in Africa since 2020.
What sets this new fund apart is its decentralised approach. In treating local ESOs as co-evaluators and co-investors rather than just beneficiaries, Village Capital is banking on community-driven solutions to catalyse broader change.
