The African Union has announced the launch of a major new fund aimed at boosting investment in biotech and AI startups across the continent. African leaders have recognized the need to nurture a new generation of innovators who can help Africa compete in areas such as artificial intelligence, biotechnology, and health sciences. The aim is to support the growth of homegrown unicorns that can develop products and services tailored to Africa’s unique challenges and reduce the continent’s reliance on imported technology.
The COVID-19 pandemic exposed Africa’s overdependence on imported technology, as shortages of essential medical supplies and equipment, such as personal protective equipment, ventilators, vaccines, and therapies, became evident. To address this issue, the African Union, in collaboration with AfroChampions, convened a virtual summit called the Boma of Africa, during which they unveiled an initiative known as 4D.
The 4D Pact seeks to mobilize millions of dollars to provide financial support for innovative startups, university spinoffs, and small- and medium-sized enterprises (SMEs) in critical development sectors. The pact aims to bridge the gap between private funding for innovation and traditional development financing, enabling innovators in fields like health, trade, local manufacturing, and job growth to access the resources they need to succeed.
Key African Union institutions, including the AfCFTA Secretariat, Africa CDC, AUDA-NEPAD, Africa Civic Aviation Commission, and the Africa Capacity Building Foundation, are leading the charge to allocate resources to innovators and address the existing gap between private and development funding. This initiative will add a layer of support systems to the financial commitments, increasing the chances of success for qualifying entities.
According to Monique Nsanzabaganwa, the Deputy Chairperson of the African Union Commission, the 4D Initiative is built upon the Trillion Dollar Fund (TDF) initiative launched in 2020. The initial pledges for the TDF and 4D exceed $1 billion and are linked to commitments in vaccine manufacturing and genomics. However, the 4D Pact will redirect more of these resources to new actors in African innovation hubs, including Kenya, to foster local talent and address critical development sectors.
Development Finance Institutions such as BADEA, AFC, AfDB, and Afreximbank are being mobilized by the African Union to provide financial support for the 4D Initiative. The initiative aims to expand investment in Africa, with a particular focus on local production of advanced technologies that have a significant social impact, including medicines, vaccines, medical devices, gene therapies, biotech, artificial intelligence, and biomaterials. It also intends to establish an innovation marketplace and common digital platforms to help startups scale their services.
The 4D Initiative aligns with the African Union’s Agenda 2063, which aims to shape the future of the continent by leveraging technology, fostering collaboration, and nurturing knowledge economies. The launch of the initiative coincides with Africa Integration Day, where influential stakeholders from across the continent gather virtually to develop an action plan for the 4D roadmap. The goal is to stimulate job creation and establish robust knowledge economies that position Africa for global relevance.
The Boma event will feature keynote speeches from Tidjane Thiam, an esteemed international banker, and various presidents and business leaders, including the Presidents of Ghana, Ethiopia, and Comoros. This collaborative effort by the African Union and AfroChampions demonstrates a proactive approach to addressing Africa’s technological challenges and encouraging sustainable development across the continent.
