Village Capital, a global nonprofit supporting high-impact startups, has announced the selection of five entrepreneur support organisations (ESOs) in Ghana, Nigeria, and Tanzania as venture partners for a new $4 million fund. The initiative, known as the Africa Ecosystem Catalysts Facility (AECF), is supported by the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO). The program aims to boost early-stage ventures tackling economic mobility and climate resilience—two of Africa’s most urgent development priorities.
Locally Rooted Partners Lead the Charge
The selected venture partners include Reach for Change in Ghana, Africa Fintech Foundry and Fate Foundation in Nigeria, and Anza Entrepreneurs and Ennovate Ventures in Tanzania. Each of these ESOs brings extensive experience in nurturing local startups and building entrepreneurial capacity within their communities. Their inclusion is central to Village Capital’s strategy of adopting a “context-first” approach that emphasizes collaboration with those who understand regional needs and constraints.
A Shift in Early-Stage Investing Strategy
According to Village Capital, this approach allows for smarter investment decisions that are tailored to the lived realities of African startups. By involving ESOs as co-evaluators and ecosystem builders, the AECF aims to address persistent funding gaps that plague early-stage companies. “This isn’t just about sourcing deals, it’s about making smarter, more informed investments by working alongside those already building and strengthening their entrepreneurial communities,” said Nathaly Botero, Innovations Manager at Village Capital.
Catalyzing Systemic Impact through Collaboration
The AECF represents a new model for inclusive capital deployment, one that seeks to shift power closer to the ecosystems it intends to serve. ESOs under this initiative are not just intermediaries; they are positioned as venture partners capable of influencing funding decisions and shaping investment pipelines. By enabling these local players to lead on due diligence and venture support, Village Capital hopes to reduce investment risk and drive more equitable outcomes.
Building on a Track Record of Impact
Village Capital has been active in Africa for years, with recent investments totaling $850,000 into agritech startups such as Kenya’s Aquarech and Nigeria’s Coamana in 2024. Since its founding in 2009, the nonprofit has helped mobilize more than $7 billion in investment capital, supporting around 1,800 startups globally. The launch of the AECF marks a deepening of this commitment, with a focus on building sustainable infrastructure for early-stage innovation.
Driving Local Solutions to Global Problems
The fund is especially focused on startups developing practical, scalable solutions that enhance economic opportunity and climate resilience. These include innovations in agriculture, financial inclusion, energy access, and small business enablement—sectors where the selected ESOs have deep expertise. With this place-based investment model, the AECF is positioning itself to back ventures that can scale meaningful change from the ground up.
A Blueprint for the Future of Ecosystem Support
The inclusion of local ESOs as venture partners may serve as a replicable model for other funders seeking to make more informed and impactful early-stage investments in emerging markets. By bridging the gap between capital and community, Village Capital and its partners are redefining how development capital is allocated and managed. The initiative also signals growing recognition of the importance of local context in shaping the success of startups in Africa.
With the launch of the $4 million Africa Ecosystem Catalysts Facility, Village Capital is charting a new path for ecosystem-driven innovation in Africa. By partnering with trusted local organizations, the initiative aims to create a stronger, more inclusive pipeline of startups equipped to solve the continent’s most pressing challenges. As the AECF unfolds, it could offer a powerful template for transforming startup ecosystems across the Global South.