Senegal has launched a US$50 million investment fund aimed at supporting early-stage startups and addressing a major financing gap that has slowed the growth of innovative companies in Francophone West Africa.
The Catalyst DER/FJ fund, announced by Senegal’s Rapid Entrepreneurship Delegation for Women and Youth (DER/FJ) in Paris on June 20, will provide financing to startups at the pre-seed and seed stages, targeting companies that are often unable to secure capital during their earliest phases of development.
DER/FJ General Delegate Aida Mbodji announced the initiative during a keynote address at the AfricaTech stage of VivaTech 2026, where she highlighted the challenges facing young companies seeking initial funding.
Her presentation, titled “Bridging the Pre-Seed Funding Gap in Francophone West Africa: How Institutional Capital Builds the Next African Unicorns,” focused on the need to strengthen the region’s venture capital ecosystem and provide more support to entrepreneurs at the beginning of their journeys.
The fund responds to a persistent challenge across Africa’s startup sector: while larger companies continue to attract major investment rounds, early-stage businesses often struggle to access the capital needed to build teams, test ideas and develop products.
More Read
According to data from Africa: The Big Deal, seed-stage financing accounts for only about 1.5 percent of total startup capital raised across Africa. This compares with between 4 percent and 6 percent typically recorded in markets such as the United States.
Industry experts say the shortage of early funding creates a major obstacle for entrepreneurs, particularly those developing new technologies and business models that require time and investment before generating revenue.
Grégoire de Padirac, CEO of Digital Africa, has described seed financing as a critical foundation for African innovation, arguing that entrepreneurs often face funding shortages when their companies are still at their most vulnerable stage.
The Catalyst DER/FJ fund aims to change that dynamic by using public resources to attract private investment, create a multiplier effect and strengthen Senegal’s position as a hub for technology and entrepreneurship.
The initiative is expected to support startups operating in areas linked to innovation, digital transformation and emerging technologies, while helping promising companies move from early concepts to scalable businesses.
During the fund’s launch activities, five Senegalese startups participating in the country’s delegation presented their solutions to investors and strategic partners.
The companies Andakia, Baamtu, SenITI, FAJMA and Absar showcased projects representing Senegal’s growing innovation ecosystem and the type of businesses that could benefit from improved access to early-stage financing.
Senegal has increasingly positioned entrepreneurship and technology as key drivers of economic growth, with government-backed initiatives focusing on supporting young entrepreneurs, women-led businesses and digital enterprises.
The launch of Catalyst DER/FJ reflects a broader effort across Africa to develop stronger startup ecosystems by improving access to capital, mentorship and international partnerships.
More Read
Supporters of the fund say increasing investment at the earliest stages of business development will be essential to creating globally competitive African companies and producing the next generation of technology-driven enterprises.
