A new fund has been started in East Africa to provide seed capital for promising web and mobile entrepreneurs.
Called the Savannah Fund, the project has collected $10 million US to create a Silicon Valley-style accelerator for East African countries such as Tanzania, Kenya, Uganda, Rwanda and Burundi, East Africa. Chosen start-ups will get about $25,000 and in exchange will give the fund equity of 15 percent.
“They will then have three to six months to prove themselves. Successes will have a chance of follow-on funding in the region of $100,000 to $200,000,” said one of the fund’s founders, Mbwana Alliy of Tanzania.
The start-up capital for the fund came from investors in Africa and America’s Silicon Valley.