Nasir El-Rufai unveils $100 million venture capital fund for Nigerian startups

The ex-governor of Kaduna state, Nasir El-Rufai, has announced a $100 million venture capital fund, specifically aimed at nurturing startups in Nigeria, with a focus on the burgeoning tech ecosystem in Kaduna.

El-Rufai plans to commit $2 million to kickstart the initiative, underlining his commitment to turn aspirations into reality. To complete the funding, he aims to persuade investors, particularly those who trust his judgment for detailed analysis.

The investors will mostly be those “who believe in us but don’t have the capacity or the time to do the analysis and evaluation. But they trust our judgment and they will come with us.” he said in a statement.

El-Rufai’s recent appearance at the Africa Investment Forum in Marrakech showcased a rejuvenated figure, far removed from the individual who once faced intense social media scrutiny. The former governor actively participated in all multi-stakeholder Africa Investment Forum sessions, aligning with its vision to channel capital toward critical sectors, achieving Sustainable Development Goals, the African Development Bank’s High 5s, and the African Union’s Agenda 2063.

Teaming up with private sector partners, including Eyo Ekpo of Excredite Consulting Limited, El-Rufai’s primary focus is on Nigeria, yet he envisions a broader impact across Africa. Citing projections that foresee Africa supplying a substantial portion of the global workforce by 2050, El-Rufai emphasizes the need for increased investments in the younger demographic.

Notably, the venture capital fund will not exclusively target new startups; it also aims to tackle management challenges in established yet viable companies. El-Rufai envisions investing in these companies, resolving issues, and guiding them toward successful exits, stating, “We don’t intend to remain in any business. We want to catalyze growth in these startups.”

During the African Investment Conference, El-Rufai expressed a strategic goal to forge continental partnerships and explore opportunities with climate-focused investors. Asserting Nigeria’s potential contributions to Africa and the world, he highlighted the nation’s population, entrepreneurial capability, and the bold innovation of its youth as compelling assets.

In his words, “What young people need is essentially mentoring and financing to get things going. They develop the idea and see whether it is viable. And we will open doors for them because they don’t have contact. They don’t know or have access to ministers, presidents, or regulatory agencies. We do. We know the minefields that they have to navigate. We know that they need to give them appointments and we can provide them with the startup funding and in return we take an equity position.

We don’t want to take your business; we want to develop it. But if we take the risk on you, we will take a percentage of the business,”

The inaugural fund is set to operate for three to four years, with an anticipated launch early next year. To broaden the initiative’s impact, the company will be headquartered in Abuja, aiming to diversify funding beyond the already prominent Lagos. El-Rufai and his partners aspire to stimulate interest in startup funding across ecosystems in Kaduna, Abuja, and other country regions.

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Nasir El-Rufai’s venture capital fund: A catalyst for inclusive societal transformation

The choice to diversify economic hubs beyond Lagos, with Abuja as the headquarters, aims to foster inclusive growth and create alternative thriving regions. The emphasis on addressing management issues in established companies signals a commitment to corporate sustainability, potentially influencing broader business practices.

Beyond economic gains, the venture signifies a push for technological advancement, innovation, and societal well-being, impacting education, healthcare, and living standards.

El-Rufai’s vision aligns with projections of Africa supplying a global workforce by 2050, suggesting long-term societal changes in education, skills development, and career pathways. The initiative’s collaborative approach seeks continental partnerships, presenting opportunities for knowledge exchange and cultural enrichment.

Overall, El-Rufai’s venture capital fund emerges as a catalyst for positive societal change, shaping a dynamic and inclusive future for Nigeria and the broader African continent.

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