Shifting Focus: African Tech Leaders Invest in Factories Over Startups

A new philanthropic fund backed by prominent African tech founders is making a bold bet that the continent’s economic future lies less in high-growth startups and more in traditional industries like manufacturing. The Africa Jobs Fund (AJF), with $100 million pledged over five years, aims to create large-scale formal employment opportunities—a sector venture capital has largely overlooked.

“Persistent poverty is at its core a jobs problem,” said Daniel Yu, Wasoko founder and AJF’s lead. “We believe that by supporting companies creating real jobs, we can significantly improve livelihoods across the continent.” The fund specifically targets export manufacturing and international labour mobility, sectors proven to lift countries out of poverty.

The need is clear: Sub-Saharan Africa adds 15.4 million people to its workforce annually but creates only about 3 million formal jobs. This mismatch leaves a vast majority in informal employment with limited income growth or social protection. Research shows that workers transitioning from subsistence agriculture to factory jobs can see productivity increase fivefold, while those securing international roles can experience similar income jumps.

AJF’s approach differs from traditional venture capital by focusing on de-risking early-stage manufacturers and facilitating ethical recruitment pathways—addressing key barriers preventing these opportunities from expanding. The fund has ambitious goals: generating $50 billion in cumulative income gains for African workers and doubling the lifetime earnings of at least 250,000 low-income individuals.

The initiative reflects a growing recognition among Africa’s tech elite that solving poverty may require less disruption and more focus on proven economic engines. As Yu noted from his experience building Wasoko, “traditional businesses can be just as impactful—maybe even more so—than glitzy tech startups.” This perspective is shared by advisors like Iyin Aboyeji (Andela/Flutterwave co-founder) and Samantha Power (former USAID Administrator), signaling a broader shift in how Africa’s leaders approach economic development.