Allianz Global Investors’ Africa-focused impact fund of funds, AfricaGrow, has invested in Africa-focused venture capital firm TLcom’s second fund.

TLcom has reached a first close at $70 million and is targeting $150 million for the vehicle, according to a statement from the firm. Other investors in TLcom’s fund include corporate Bertelsmann, foundation King Philanthropies, asset manager FBNQuest and DFIs CDC Group, IFC, Proparco and Swedfund. The fund will invest in seed- and series A-stage technology companies in fintech, mobility, agriculture, healthcare, education and ecommerce sectors.

AfricaGrow is a €200 million joint venture between AllianzGI and German development finance institution KfW’s subsidiary DEG, established in 2019 with between €55 million and €70 million in commitments from Allianz companies. The fund-of-funds’ mission is to “promote sustainable economic and social development” and create “measurable positive social and/or economic impact”.

“One thing is clear to those who are close to the African VC market: it will grow,” said Martin Ewald, lead portfolio manager for impact investments at AllianzGI, in an emailed statement. “There is considerable upside for everyone if investment activities accelerate even more: African businesses can boost productivity, gain in terms of competitiveness and technological edge and tens of millions more Africans could gain stable employment while generating returns for investors.”