AfCFTA backs Angel investment movement, pledges support for cross-border startup funding

The African Continental Free Trade Area (AfCFTA) has pledged to work closely with angel investment networks to strengthen Africa’s early-stage funding environment and attract more local capital into innovation-driven enterprises.

Wamkele Mene, secretary-general of AfCFTA, made the announcement in a virtual keynote address at the African Business Angel Network (ABAN) Congress 2025, where he reaffirmed the organisation’s commitment to building a more enabling investment climate across the continent.

“The principle behind your mission statement, ‘Africa must fund Africa,’ is at the heart of the vision of the AfCFTA,” Mene said. “Every initiative you lead strengthens Africa’s resilience and self-reliance in raising capital for itself.”

He noted that AfCFTA’s Protocol on Investment and Protocol on Digital Trade align with ABAN’s mission of mobilising African capital for African startups. The protocols, he explained, are designed to harmonise investment laws, reduce bureaucratic barriers, and lower taxation costs for investors across member states.

As part of efforts to deepen innovation, Mene announced the Digital Innovation Challenge Programme, an AfCFTA initiative aimed at supporting African innovators developing solutions that enhance intra-African trade.

The AfCFTA chief also addressed the gender funding gap in venture capital, noting that women represent only 19 percent of angel investors on the continent, while the gender funding gap exceeds $40 billion annually.

He said AfCFTA will use its Protocol on Women, Youth, and Trade to support initiatives such as the RUTA Fund and other women-focused investment vehicles.

“When we finance women and youth, not only are we promoting fairness, we are also expanding markets, diversifying leadership in business, and building resilience,” Mene said.

He added that increasing local investment participation would also help tackle Africa’s brain drain, by creating opportunities that encourage innovators and entrepreneurs to stay and build within the continent.

“Investing locally means investing in the future of Africa,” he said. “It ensures our brightest minds find purpose and prosperity here, rather than seeking it abroad.”