Botswana-Based Fund Seeks Untapped Potential in Southern African Tech

While venture capital flows to Africa continue to concentrate in the “Big Four” markets—Egypt, Kenya, Nigeria, and South Africa—a new fund is aiming to address a critical gap. The Botswana Tech Fund, anchored out of Guernsey with £10 million ($13.5 million) in committed capital, is focusing on Southern African countries that have historically received less than 5% of the continent’s venture funding.

The fund’s founders argue this geographic concentration overlooks significant potential in markets like Botswana, Zambia, Namibia, Mozambique, Angola, and Zimbabwe—countries collectively home to tens of millions of consumers and a youthful population eager for digital solutions. Rather than routing capital through established hubs, the fund intends to deploy it at the source, fostering local ecosystems.

Strategic Approach Across Multiple Stages

The Botswana Tech Fund employs a three-pronged investment strategy:

1. Pre-seed accelerator: Providing £100,000 ($135,000) grants to roughly 100 early-stage companies over five years.
2. Growth investments: Ranging from £500,000 ($670,000) to £2 million ($2.7 million) in primary equity.
3. Secondary market transactions: Acquiring stakes from existing investors in more mature companies across Africa.

This approach allows the fund to support startups at all stages while also generating returns through liquidity events.