A new $69 million (CFA 40 billion) innovation fund has been launched to support deep technology (DeepTech) ventures across Francophone Africa, backed by the African Intellectual Property Organization (OAPI) and the African Guarantee Fund (AGF). The initiative, announced on Monday in Yaoundé, Cameroon, aims to finance 1,000 innovative projects over five years across OAPI’s 17 member states.
The agreement establishes a financial and technical support mechanism designed to bolster startups and small and medium-sized enterprises (SMEs) in sectors such as artificial intelligence, biotechnology, advanced manufacturing, and clean energy. AGF will provide credit guarantees to ease access to bank financing, alongside mentorship and commercialization support for patented innovations.
Denis Bohoussou, OAPI’s Director General, said the fund addresses long-standing challenges in scaling African innovation. “Previous efforts, like the African Innovation Fund, had limitations. This new approach is holistic — combining financing, technical assistance, and industrial partnerships to build a sustainable ecosystem,” he told the Financial Times.
Under the agreement, OAPI will also invest CFA 5 billion ($8.6 million) in AGF, becoming its second African shareholder after the African Development Bank (AfDB). AGF’s CEO, Jules Ngankam, welcomed the move, noting that most of the fund’s backers are non-African entities, including Denmark, France, Germany, and the U.S.
How the Fund Will Operate
The initiative will prioritize high-impact DeepTech projects, offering:
- Guaranteed loans to reduce lender risk.
- Commercialization support to help innovators monetize patents.
- Industry linkages to connect startups with manufacturers and investors.
- Tailored mentorship across project lifecycles, from ideation to expansion.
The first call for applications is expected in Q3 2025, with an initial target of 200 projects in the inaugural year.
Africa’s Innovation Landscape
The launch comes as African nations struggle to translate research into market-ready solutions. According to the 2024 Global Innovation Index (GII), Mauritius (30.5), Morocco (28.8), and South Africa (28.3) lead the continent in innovation output. South Africa also dominates patent filings, with 5,221 applications last year — far ahead of Egypt and Nigeria, which ranked 12th in Africa (113th globally) with a GII score of 17.1.
Experts say the OAPI-AGF fund could help Francophone Africa close the gap. Access to risk capital remains a major hurdle for DeepTech startups in Africa. If executed well, the fund could unlock a new wave of scalable solutions.
Despite its ambitions, the fund faces hurdles, including bureaucratic delays and uneven banking infrastructure across OAPI’s member states, which include Senegal, Ivory Coast, and Cameroon. Success will hinge on efficient disbursement and strong public-private coordination, analysts say.
For now, the initiative signals growing institutional interest in Africa’s DeepTech potential — if the funding reaches the right innovators.