Africa’s cross boarder payment is projected to grow from $329 billion to $1 trillion by 2035, driven by 12% annual growth rate, according to Oui capital. This surge is fueled by increased demand for faster, cheaper digital payment solutions as digital system replace traditional banking. Despite ongoing challenges like high remittance fees and regulatory hurdles, the sector is gaining momentum, through mobile money, blockchain, and fintech APIs. Digital channels are formalizing informal transactions, and remittance inflows reach nearly $100 billion in 2023, making up 5.2% of Africa’s GDP.
“What made ecosystems like Silicon Valley successful wasn’t just money or innovation,” says Dillon. “It was the integration of risk-tolerant capital, strong academic networks, and collaborative policy.”
Creating Conditions for Success
The Africa Bridge Fund, cofounded by Frank McCoster, is built around a four pilliar strategy;
. Capital; Providing startus with necessary funding.
.Connctivity; Enabling access to market, customrs, and networks.
.Co-investors; Bringing in additional strategy partners for deeper support.
.Talent; Supporting access to skiled human capital.
This mirrors how Europe’s tech scene developed in the 2000s — not just with money, but through a supportive ecosystem.
Insight: The fund recognizes that money alone isn’t enough. Startups thrive when they are part of a healthy, connected system.
2. Addressing Persistent Funding gaps
Even though venture capital has grown in Africa, many early-stage startups still face difficulty accessing funds. Africa Bridge Fund works around this by:
- Partnering with local institutions and co-investors who understand the market.
- Ensuring strategic support accompanies financial backing.
Insight: Bridging the gap between capital and context is key. Local partnerships increase the chances of startup success.
3. “Startups don’t grow in isolation”
This quote from McCosker emphasizes the need for:
- Mentorship.
- Market access.
- Supportive policy environments.
Insight: The startup journey is interdependent — relying on multiple layers of ecosystem support.
4. Different Models, Same Ambition
Co-founder Dillon categorizes African startups into three types:
- Regional solutions: Targeting local problems with context-specific innovations.
- Adaptations: Adapting global models (like Uber, Airbnb) to fit African conditions.
- Global champions: Homegrown African innovations with the potential to go global.
Each model needs different kinds of support, but all benefit from a robust African tech eco system.
Insight: Success doesn’t follow a one-size-fits-all model. What matters is the eco system that support each part.
5. Africa’s Unique Advantages
Africa has some structural advantages:
- A young, enterpreneurer population
- Lower development costs.
- Growing local participation in venture capital (from 19% to 31% over a decade)
- Rise of technologies like AI.
These trends create a strong momentum for building impactful and scalable startups.
Insight: Africa has the right ingredients for a tech boom, especially in sectors with social impact potential.
6. Measuring Success Differently
Africa Bridge Fund doesn’t only look at financial returns (exits). It also tracks:
- Impact on healthcare.
- Digital inclusion.
- Socioeconomic Improvement.
This reflects a “profit with purpose” mindset.
Insight: True success is transformational impact, not just valuations or IPOs.
7. “The future… is transformative”
Dillon closes with a bold vision:African tech future is not only promising it’srevolutionary. And success will be built ecosystem by ecosystem, city by city, venture by venture.
In conclusion;
African Bridge Funds is;
1 . Investing in more than one startups.
2 .Focusing on impact as well as return.
3 . Creating Infractures that mirros what helped tech flourish elsewhere.
4 .Backing diverse models,from local-problem solvers to global pioneers.
This approach signal a mature, contextualized vision for African innovation_one where success is measure in both dollars and development.
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