The Ex-Governor of Kaduna State, Nasir El-Rufai, intends to establish a venture capital fund with a capitalisation of one hundred million dollars for ventures in Nigeria, particularly those in the Kaduna technology ecosystem.
That El-Rufai is no longer the Governor of Kaduna State does not mean that he has lost his enthusiasm for doing significant endeavours. The former governor makes an outspoken declaration as he transitions into the private sector.
He is willing to risk two million dollars of his own money for the offtake of the fund. He intends to get investors to donate the remaining funds with their support. Those individuals “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” will make up the majority of the investors.
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El-Rufai is all for the future
It would appear that the former governor, who was instrumental in selecting the current President of Nigeria as the party’s nominee, has moved on from his disappointments and is now focusing on the future.
It was impossible to find any evidence of the man who had become the subject of a great deal of teasing on social media in Marrakech. El-Rufai, who arrived in Marrakech, appeared to be in good spirits and participated in all of the sessions of the Africa Investment Forum.
This forum is a multi-stakeholder, multi-disciplinary platform with the goal of channelling capital towards critical sectors in order to achieve the Sustainable Development Goals, the High 5s of the African Development Bank, and the Agenda 2063 of the African Union.
According to him, he has the intention of establishing a venture capital fund or private equity firm that will invest in young Nigerians who have new approaches to business. Regardless of the sector of the economy that the ideas pertain to, it is irrelevant. It can be in the agricultural sector. Whether it be information and communications technology (ICT) or the creative business, El-Rufai and his fund will focus on these concepts so long as they have the ability to add value to the globe.
El-Rufai stated that during his time as governor of Kaduna, he had the opportunity to interact with a large number of students in the state who were developing innovative concepts and technologies. The majority of them, on the other hand, did not have somebody to guide them and assist them in developing their ideas.
“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,” El-Rufai said.
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What to expect for the future
He is collaborating with a select group of private sector partners, one of whom is Eyo Ekpo, the co-founder of Excredite Consulting Limited. Although their primary focus is on Nigeria, the ambition is Africa. Based on a report, he predicts that Africa will supply the world with a significant portion of the workforce it requires by the year 2050.
The population of Africa is projected to reach 2.5 billion by the year 2050, which is equivalent to around 25% of the world’s total population, as stated in a report published by the Guardian.
In light of these estimates, El-Rufai suggests that additional expenditures should be made in the younger demographic. On the other hand, his fund will not only concentrate on new businesses that are just getting started; there is also a strategy to involve both established businesses that are struggling with management issues and are still viable. The venture capital fund will make investments in these kinds of businesses, help them get their affairs in order, and then take them to the exit stage.
“We don’t intend to remain in any business. We want to catalyse growth in these startups,” he said.
Through attendance at the African Investment Conference, one of the objectives was to search for continental alliances and investors, as well as to investigate potential options with investors who are concerned about climate change.
“Nigeria has a lot to offer Africa and the world. Our population, entrepreneurial capability, the innovation of our young people and their boldness and courage to find success. We just felt that we have a duty to encourage,” he said.
There will be an investment period of three to four years for the first fund. It is anticipated that the fund will begin operations at the beginning of next year, and the company will have its headquarters in Abuja. Due to the fact that there is currently a significant amount of interest in funding innovation in Lagos, this is done in order to spread the funding beyond Lagos. El-Rufai and his partners strive to achieve this goal in order to stimulate interest in startup funding in ecosystems in Kaduna, Abuja, and other regions of the country.