IFC as implementing partner of the IDA20 Private Sector Window Blended Finance Facility will provide up to US$5.0 million in the form of a subordinated co-investment (“blended finance co-investment”). Africa has limited participation within the Artificial Intelligence value chain, as the continent receives less than 1 percent of venture capital funding for artificial intelligence/machine learning startups. The blended finance co-investment will enable IFC to invest in the company and in turn help the company to execute its scale up plans that are expected to have positive social and human capital effects by creating quality jobs and skill transfers in Uganda. The level of concessionally (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 8.77% of the total project cost. The total cost of the project is US$10 million. This estimate is based on the difference between (i) a “reference return” (“the return calculated using IFC’s expected return model, which comprises three main elements: risk, cost and profit) and (ii) the “concessional return” being expected by the blended concessional finance co-investment. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance.

The development impact of the project will be via: (i) Project Outcomes (Stakeholders): Direct employment opportunities for workers in Uganda, especially women and disadvantaged youth, resulting in improved livelihoods and skills upgrading. (ii) Contribution to Market Creation (Integration): Stronger integration of Uganda's digital entrepreneurship ecosystem, via capacity building channels.

IFC’s expected additionality will be via: (i) IFC’s own account equity: IFC will provide patient capital to support the Company’s expansion in Uganda; (ii) Knowledge, innovation, and capacity building: IFC will share expertise and learnings from its portfolio companies and network; and (iii) Standard setting.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability.

Key Environmental and Social (E&S) risks and impacts are expected to include the company’s organizational capacity and systems for E&S management of the project and its operations in compliance with legal requirements as well as IFC PSs; assurance of fair, safe and healthy working conditions for its workers including management of life and fire safety risks; energy use and resources consumption; and stakeholder engagement. 

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.