A majority of those countries that will receive immediate debt service relief are from Africa, media reports said.These African countries include Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone and Togo.

Currently, the CCRT has the capacity to provide $500 million in grant-based debt service relief. China and the Netherlands have also become donors making significant contributions. Japan has provided $100 million as immediately available resources and the UK has pledged $185 million to the relief, media reports said.

Kristalina Georgieva, Managing Director of the International Monetary Fund, in a statement said,” Today, I am pleased to say that our Executive Board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the Covid-19 pandemic.This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.”

The post IMF executive board approves debt service relief to 25 poor countries appeared first on International Finance.

Jumia’s remaining two founders are of French origin—Jeremy Hodara and Sacha Poignonnec. According to media firm Weetracker, which targets startup funding in Africa, African startups raised $726 million in 458 deals in 2018.

Even impact investing funding is skewed in favour of Western founders. According to the funding records of Global Impact Investing Network, just over 50% of the funding raised by African startups were those with Western or ethnic European founders.

Abdul Karim Mohamed, a Canadian Somali development worker who focuses on the African startup scenario told German publication DW that “ Entrepreneurs from Western Europe and North America have an upper hand when it comes to accessing capital and local entrepreneurs often get overlooked.”

Local entrepreneurs are often limited by the reach of their networks. In addition, the governments and established African entrepreneurs have barely warmed up to the idea of startup funding. Most investors see startup investing as too risky.

But the success of Jumia’s IPO could change investor perceptions about African startups. Already French drinks major Pernod Ricard holds a 5.1 stake in Jumia. Mastercard has agreed to buy $56 million worth Jumia stock in a private placement at the time of the IPO. Jumia’s largest shareholder is African telecom operator MTN with 30% followed by Rocket Internet.

The post As Jumia lists on NYSE, African startup founders find capital hard to get appeared first on International Finance.