The African Development Bank (AfDB) is making a strategic push to accelerate Africa’s deep technology sector through a first-of-its-kind Pan-African Venture Studio Program, targeting the creation of 30 high-growth startups leveraging cutting-edge innovations. The multilateral lender has opened bids for consultancy firms to design and implement the 12-month initiative, which will focus on artificial intelligence (AI), blockchain, biotechnology, quantum computing, robotics, and advanced manufacturing.
The move comes as African nations seek to transition from consumer-driven digital innovation to science-based, IP-intensive ventures capable of solving structural challenges in energy, healthcare, agriculture, and climate resilience. While Africa’s startup ecosystem raised $3.2 billion in 2024, according to Partech Africa, less than 5% went to deep tech — a gap the AfDB aims to bridge.
Why Deep Tech — And Why Now?
Deep technology means “solutions built around hard-to-replicate scientific or engineering breakthroughs”. The sector has remained nascent in Africa due to:
- Longer development cycles (5–10 years vs. 2–3 for software startups)
- High capital intensity, with limited local risk-tolerant funding
- Scarce specialized talent, particularly in fields like biotech and quantum computing
Yet the potential is vast. Biotechnology could revolutionize Africa’s $1 trillion agricultural economy through drought-resistant crops; AI and robotics could optimize mineral processing, a sector accounting for 30% of the continent’s exports. The AfDB’s venture studio model — unlike traditional accelerators — will co-create startups from inception, providing hands-on technical and commercial support.
Inside the Venture Studio Blueprint
The program, housed under AfDB’s Innovation and Entrepreneurship Lab (IEL), will follow a stage-gated process:
- Sourcing & Screening — Identifying high-potential scientific innovations from African universities, research labs, and existing startups.
- Validation & MVP Development — Rigorous testing of market viability, including customer discovery and prototype development.
- Venture Formation — Assembling founding teams, securing IP, and structuring equity.
- Investment Readiness — Preparing startups for seed/Series A funding, targeting $300,000+ in follow-on capital per venture.
Notably, the AfDB mandates that all startups reach Technology Readiness Level (TRL) 6 — a functional prototype in a real-world environment — within 12 months. For context, most African deep tech startups stall at TRL 3–4 (lab-scale proof of concept).
Strategic Alignment with AfDB’s High 5s Agenda
The initiative ties into the bank’s Ten-Year Strategy (2024–2033), particularly its “High 5” priorities:
- “Industrialize Africa” — Advanced manufacturing and robotics startups
- “Light Up Africa” — Quantum computing for energy grid optimization
- “Feed Africa” — Biotech for crop resilience and alternative proteins
It also dovetails with the Jobs for Youth in Africa (JfYA) Strategy, which aims to create 25 million jobs by 2025. Deep tech ventures typically generate 3.2x more skilled employment than traditional startups, per a 2024 IFC report.
Who Can Apply?
AfDB seeks venture studios, university tech transfer offices, or accelerators with:
– Proven deep tech exits (e.g., biotech IPOs, AI acquisitions)
– Africa-focused deal flow (50+ pipeline startups)
– Multidisciplinary teams (PhDs in relevant fields preferred)
Broader Implications
If successful, the program could:
– Position Africa in global R&D value chains (e.g., supplying biotech APIs to Europe)
– Attract corporate VCs (Google, NVIDIA already scout African AI talent)
– Catalyze sovereign deep tech funds.
Timeline & Next Steps
- May 9, 2025: Consultant applications close
- June 2025: Winning firm selected
- Q3 2025: First cohort announced (target: 50% women-led teams)
For more information visit: https://www.afdb.org/en/consultants/eoi-implementation-pan-african-venture-studio-program-deep-technology-start-ups-ahhd-83236