Tunisia is strengthening its position in Africa’s startup ecosystem through the expansion of ANAVA, its state-backed fund of funds. With plans to increase its total funding pool to $108 million (€100 million) and launch DEAL 2.0, the initiative will directly prepare and finance hundreds of startups, providing them with the resources, mentorship and investor connections necessary to scale. This approach highlights the government’s commitment to sustainable, long-term growth and the development of a robust venture capital ecosystem both locally and regionally.
Investing for Long-Term Growth
ANAVA, managed by Smart Capital, operates as a fund of funds, meaning it does not invest directly in startups but allocates capital to venture capital (VC) firms, which then back early-stage companies. In 2024, the fund’s net assets grew to $18.8 million (€17.6 million), up from $12.6 million (€11.6 million) the previous year, following a $6.2 million (€5.8 million) capital injection. Its net profit for the year declined to $233,000 (€213,000) from $625,000 (€565,000) in 2023, a normal fluctuation in the early stages of a fund’s life.
Annual profit is not the main measure of success for ANAVA. Its mission is to deploy capital strategically into the ecosystem and generate returns over the typical 10-year lifecycle of a VC fund, relying on successful exits such as acquisitions or IPOs. In 2024, revenue reached $1.02 million (€951,000), driven entirely by unrealized gains in existing VC investments, while $390,000 (€365,000) in unrealized losses reflected early-stage volatility. The true performance will become clear as portfolio companies mature.
Building a Robust Venture Capital Engine
ANAVA is backed by a consortium of financial and governmental institutions, including Tunisia’s Caisse des Dépôts et Consignations (CDC), KfW and the World Bank. Its strategy focuses on building a diversified portfolio of VC managers. To date, ANAVA has committed $49.2 million (€45 million) to ten funds, seven of which focus on Tunisia and three are pan-African, extending its reach across the continent.
The fund’s key portfolio players include:
- 216 Capital Ventures: A Tunis-based fund focused on early-stage local startups.
- MEDIN Fund Management: Manages TITAN SEED FUND I, offering investments in both local and foreign currency.
- Janngo Capital: A pan-African fund founded by Fatoumata Bâ, which recently closed an $84 million (€78 million) fund for tech startups across the continent.
- LoftyInc Capital: A Nigerian-founded firm supporting fintech and software startups, including investments like Flutterwave.
- Flat6Labs: A MENA-focused seed investor, now deploying a $95 million fund.
- Silicon Badia: An international firm investing in technology companies across the MENA region.
Through these partnerships, ANAVA ensures startups gain both funding and strategic guidance. Its $835,000 (€716,000) annual operating cost supports management, partner selection and investment monitoring, ensuring the fund runs efficiently while prioritizing long-term impact over short-term profits.
Expanding Impact Across Africa
While headquartered in Tunisia, ANAVA’s influence extends across the continent. Capital deployed through its partner funds has already reached 45 startups in 12 African countries, including Nigeria, Senegal, Egypt, Ivory Coast and Kenya. This regional approach allows Tunisian startups to access larger African markets and exposes ANAVA to high-growth opportunities beyond Tunisia.
By combining funding, mentorship and market exposure, ANAVA is creating a strong foundation for sustainable startup growth. Its focus on long-term ecosystem development is designed to generate economic benefits that extend well beyond yearly financial results. The fund of funds model amplifies impact by leveraging the expertise of VC managers, creating networks and supporting startups through critical early stages.
ANAVA’s approach positions Tunisia as a key hub for venture capital and innovation in Africa. The fund is not only building local capacity but also helping entrepreneurs integrate into regional markets, accelerating growth and fostering a culture of innovation. The launch of DEAL 2.0 and the expanded funding pool represent a significant step forward in achieving these goals, demonstrating the fund’s commitment to measurable, long-term impact.
By maintaining focus on nurturing startups and strengthening the venture capital ecosystem, ANAVA is shaping a vibrant, resilient and scalable network of innovation. Its success will be measured not by annual profits but by the growth, sustainability and regional integration of the startups it supports. With strategic investments, robust partnerships and an expanding funding program, ANAVA is helping Tunisia cement its role as a leader in African entrepreneurship and innovation.
