In a landmark announcement from Yaoundé, Cameroon, the African Intellectual Property Organization (OAPI) and the African Guarantee Fund (AGF) unveiled a new $69 million (CFA 40 billion) innovation fund aimed squarely at catalyzing DeepTech ventures across Francophone Africa. Over the next five years, the initiative seeks to finance 1,000 high‑impact projects spanning artificial intelligence, biotechnology, advanced manufacturing and clean energy in OAPI’s 17 member states. This sweeping program combines debt‑guarantee support, technical assistance and industry partnerships in an effort to surmount long‑standing barriers to scaling innovation on the continent Tech In Africa.

Bridging Africa’s Innovation Gap

Despite steady improvements in research and development, many African nations struggle to convert pioneering ideas into market‑ready solutions. According to the 2024 Global Innovation Index, Mauritius (score 30.5), Morocco (28.8) and South Africa (28.3) lead the continent in innovation, but even top performers score less than half of global leaders, signaling a persistent innovation deficit across Africa Intelpoint. Patent‑filing data further illustrate the divide: South Africa recorded 5,221 patents in the latest WIPO report—far outpacing other countries—while Nigeria filed just 17.1 score in the GII, ranking 113th globally WIPOIntelpoint. By pooling financial backing, IP expertise and market channels, the new OAPI‑AGF fund aims to accelerate DeepTech commercialization, empowering entrepreneurs to move beyond pilot phases into scalable enterprises.

OAPI & AGF: A Partnership Forged for Impact

Founded under the Bangui Agreement of 1977, the Organisation Africaine de la Propriété Intellectuelle (OAPI) provides a unified intellectual‑property framework for its 17 French‑speaking member states, from Benin to Togo. Headquartered in Yaoundé, OAPI harmonizes IP laws, streamlines patent and trademark registration and fosters capacity‑building—key elements in nurturing a cohesive innovation ecosystem. The African Guarantee Fund, established by the African Development Bank and now backed by multilateral and bilateral donors, specializes in mitigating credit risk for local banks, enabling them to extend loans to small and medium enterprises (SMEs). AGF’s partial‑guarantee products have unlocked over €3 billion in SME financing since inception, demonstrating its critical role in bridging Africa’s financing gap African Guarantee Fund – English.

Funding Structure & Donor Landscape

Under the new agreement, OAPI commits CFA 5 billion (approximately $8.6 million) as a second African shareholder in AGF, joining the African Development Bank. The remaining capital derives from a coalition of international partners—Denmark, France, Germany and the United States among them—underscoring global confidence in African DeepTech potential Tech In Africa. AGF will leverage these funds to underwrite borrower risk, providing up to 50 percent guarantees on bank loans for qualifying innovation projects. By reducing collateral requirements and interest rates, the fund unlocks credit that would otherwise remain out of reach for early‑stage ventures. Donors have also pledged in‑kind contributions, from legal advisory on IP filings to market‑access facilitation through industrial partnerships.

How the Fund Will Operate

Designed as a one‑stop innovation engine, the program comprises four pillars:

1. Credit Guarantees: AGF will indemnify financial institutions against default on loans extended to DeepTech SMEs, effectively mitigating lender risk and expanding affordable credit lines.
   
2. Mentorship & Technical Assistance: Seasoned experts—drawn from OAPI’s IP network and AGF’s pan‑African SME advisors—will guide entrepreneurs through business development, regulatory compliance and IP‐management best practices.
   
3. Commercialization Support: Through curated introductions to manufacturing partners and venture investors, the fund seeks to accelerate go‑to‑market strategies, helping startups secure pilot contracts and scale production.
   
4. Lifecycle Mentoring: From ideation and prototyping to fundraising and exit planning, customized coaching ensures that each project can navigate critical growth inflection points.

The first call for applications opens in Q3 2025, targeting 200 projects in year one and ramping up to 200 annual allocations thereafter. Selection criteria will emphasize technological novelty, market viability and potential social impact.

DeepTech Focus Areas & Spotlight Projects

The fund concentrates on four frontier domains:

• Artificial Intelligence
  AI innovations are already taking root in environmental monitoring and agriculture. A prime example is Amini, a Senegal‑headquartered deep‑tech startup that fuses satellite imagery with machine learning to fill data gaps in climate‑resilient agriculture. In late 2023, Amini closed a $4 million round led by Salesforce Ventures and Female Founders Fund—underscoring investor appetite for region‑specific AI solutions that inform everything from crop disease forecasting to land‑use planning africa-exclusive.com.
  
• Biotechnology
  While biotech funding has lagged in Francophone Africa, a growing cadre of researchers is pioneering genomics, biopharmaceuticals and bio‑manufacturing. The new fund will support startups developing low‑cost diagnostics for neglected tropical diseases and bio‑refineries converting agricultural waste into value‑added chemicals. By coupling OAPI’s streamlined patent regime with AGF’s financing guarantees, the initiative aims to de‑risk ventures that traditionally struggle to secure both IP protection and seed funding.
  
• Advanced Manufacturing & Mobility
  Mobility startups captured the largest single‑sector deal in Francophone Africa in 2024, with Rwanda’s Ampersand raising $19.5 million to produce electric motorcycles and charging infrastructure. Although based in Anglophone Rwanda, Ampersand’s success highlights the untapped potential for localized manufacturing of clean‑mobility solutions across the region—a blueprint the fund intends to replicate in OAPI countries through targeted loans and industrial partnerships Intelpoint.
  
• Clean Energy & Renewable Technologies
  Renewable‑energy projects, especially off‑grid solar systems, represent a cornerstone of Africa’s sustainable‑development agenda. In neighboring Ivory Coast, AMEA Power broke ground in March 2025 on a 50 MW solar plant in the Gontougo region, backed by Dutch financier FMO and Germany’s DEG. The farm is slated to deliver clean power to over 200,000 households by year‑end, exemplifying the large‑scale potential for solar deployments. DeepTech startups working on next‑generation batteries, energy‑management software and mini‑grid controllers stand to benefit from the fund’s blended‑finance model, which couples AGF guarantees with concessional loans PV Tech.

Africa’s Innovation Ecosystem: Trends & Challenges

Francophone Africa grapples with uneven R&D capabilities and limited venture‑capital flows. Intelpoint data show that while mobility and cloud services attracted over $20 million in 2024, critical areas such as agritech and digital health garnered less than $1 million—highlighting stark sectoral disparities. Moreover, fragmented banking infrastructures and bureaucratic delays have often slowed fund disbursement, dampening entrepreneurial momentum Intelpoint. The OAPI‑AGF fund seeks to mitigate these structural hurdles by standardizing application processes, decentralizing decision‑making and leveraging local partner networks for efficient capital deployment.

Looking Ahead: Scaling for Impact

If implemented effectively, the fund could revolutionize DeepTech on the continent by:

• De‑risking Innovation: Guarantee mechanisms reduce collateral requirements by up to 50 percent, enabling startups to secure loans where they previously could not.
  
• Building IP Muscle: Centralized IP filing through OAPI—and hands‑on mentorship from patent experts—will help entrepreneurs safeguard inventions, a critical step for attracting follow‑on funding.
  
• Fostering Regional Collaboration: By convening innovators across 17 Francophone countries, the program creates a pan‑African DeepTech corridor, accelerating cross‑border partnerships and technology transfer.
  
• Driving Socioeconomic Benefits: From climate‑resilient agriculture to off‑grid energy access, supported ventures stand to generate thousands of jobs, broaden export revenues and foster inclusive growth.
  

Conclusion

The $69 million OAPI‑AGF fund arrives at a pivotal moment for African innovation. With global donors rallying behind a unified vision, this initiative marries financial firepower with deep technical expertise. For emerging DeepTech ventures in Francophone Africa—long constrained by fragmented support—the program offers a rare convergence of capital, IP protection and commercial pathways. As the first projects gear up for the Q3 2025 launch, stakeholders will be watching closely: success here could herald a new era of African‑led technology, transforming local challenges into globally competitive solutions.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

9th May, 2025