Daniel Yu Backs African Businesses With Job Creation in Focus

Daniel Yu has spent years building businesses in Africa’s technology sector. Now he is focusing on a different problem: how to get more African businesses to create jobs. Yu, the co-founder of Wasoko, is behind the Africa Jobs Fund, which is targeting $100 million over five years. The fund is focused on two areas that receive less attention than fintech and software: export manufacturing and international labour mobility. Africa has a large and growing workforce, but many businesses do not grow large enough to become major employers. Yu is looking for companies that can expand production, enter new markets and take on more workers

Putting Capital Behind Job-Creating Businesses

Technology startups have taken up much of Africa’s investment story in recent years. But a manufacturing company expanding production can create jobs in a way that a software business may not.

The Africa Jobs Fund plans to back businesses that can produce goods for international markets and increase their workforces. That could include a manufacturer buying new equipment, a company expanding production or a business preparing to enter export markets.mThese businesses can also require much more capital than software companies. They need machinery, facilities, electricity, workers, suppliers and transport before they can expand.

The $100 million target is still a target. The fund initially planned to raise $15 million in philanthropic funding before working towards the larger five-year goal. The more important question will be which businesses receive the capital and what they achieve with it. If a manufacturer uses the funding to increase production and hire more workers, the result is different from helping another startup raise a funding round.

The Fund Also Focuses on Labour Mobility

The fund is also looking at international labour mobility, with the aim of helping African workers access legitimate jobs in countries where particular skills are in demand. For workers who can earn significantly more overseas, the income difference can be substantial. That money can support families, pay for education or be invested in a business. Getting workers into these jobs requires more than matching people with vacancies. They need the right skills, legitimate recruitment channels and protection from scams and exploitation.

Yu’s experience with Wasoko also gives him a practical view of building an African business. The company developed a B2B commerce platform for informal retailers and expanded into several African markets, raising around $145 million during its growth. The Africa Jobs Fund now takes that experience into a different area. Its target is at least 250,000 low-income people more than doubling their lifetime incomes, while the fund estimates its investments could eventually generate more than $50 billion in additional income.