Mastercard Foundation Accuses 54 Collective of Misappropriating $4.6 Million in Funds
The tech landscape in Africa is facing a significant challenge as 54 Collective, previously known as Africa Founders Ventures (AFV), finds itself embroiled in a financial scandal. The Mastercard Foundation has accused the venture capital firm of diverting $4.6 million in grant funds, leading to a South African court’s provisional liquidation order. This development highlights the importance of financial transparency and accountability in the African tech ecosystem, particularly within organizations receiving substantial funding for development initiatives.
Allegations of Fund Mismanagement and Provisional Liquidation
The situation unfolded after the Mastercard Foundation granted AFV $106.5 million, with over $42 million disbursed in 2023 and 2024. However, the Foundation later uncovered evidence suggesting that AFV was channeling these charitable funds into its for-profit subsidiary, Founders Factory Africa (FFA), and a venture capital brand named Utopia. This misuse of funds, leading to money being improperly directed to private entities, prompted the Foundation to take action, resulting in the freezing of 54 Collective’s bank accounts at Nedbank, Standard Bank, and Investec. The court’s provisional liquidation order underscores the severity of the allegations and the potential ramifications for the firm.
The allegations raise concerns about the financial practices of entities involved in African tech, and its effect on potential funding for other projects in the region.
Keywords
Related Keywords: Mastercard Foundation, 54 Collective, funds diversion, 46M, fraud allegations, grant misuse, nonprofit investigation, Mastercard Foundation scandal, charitable funds, financial mismanagement
