The Mastercard Foundation Africa Growth Fund has announced significant investments in three leading impact investment firms: Chui Ventures, VestedWorld, and SME Impact Fund. These firms will receive $9 million, $10 million, and $8 million, respectively, from the Fund, bringing the total number of investee funds to five.
This follows previous investments of $2.2 million in Aruwa Capital Management and $5 million in Inua Capital. Aruwa Capital, a pioneering firm founded and led by women, focuses on investing in women-led businesses and businesses that cater to women. The firm has a strong track record of successful investments in companies like Fastizers, CrowdForce, Taeillo, Pngme, and Lifestores Pharmacy.
Inua Capital, a Ugandan impact investor, aims to catalyze growth within the country’s small business sector and has made strategic investments in companies like Innovex.
The Mastercard Foundation Africa Growth Fund, launched in December 2022, is a $200 million fund of funds dedicated to bridging the financing gap in Africa’s impact investment ecosystem. The Fund leverages the expertise of a diverse network of partners, including Investisseurs & Partenaires (I&P), ESPartners (ESP), Criterion Institute, Genesis Analysis, and Africa Communications Group, to provide comprehensive support to portfolio companies. These partners offer invaluable assistance in areas such as business development, fund advisory, communications, and promoting diversity and inclusion within the investment landscape.
Commenting on these strategic partnerships, Samuel Akyianu, Managing Director of the Mastercard Foundation Africa Growth Fund, expressed enthusiasm, stating, “We are delighted to welcome Chui Ventures, Vested World, and SME Impact Fund to our growing family of investment vehicles. These collaborations reaffirm our unwavering commitment to fostering sustainable development across Africa through impactful investments.”
SME Impact Fund, a Tanzanian fund manager specializing in investments within the agricultural sector, has already demonstrated a significant impact. With 44 investments exceeding $15 million, the Fund has reached over 23,000 smallholder farmers and created more than 3,000 jobs in Tanzania.
Allert Mentink, CEO of SME Impact Fund, emphasized the critical role of smallholder farmers in African agriculture, stating, “Smallholder farmers are the backbone of African agriculture, yet their potential remains largely untapped due to limited access to finance. Our partnership with the Mastercard Foundation Africa Growth Fund represents a crucial step towards addressing this critical challenge. By supporting agribusiness SMEs, we are not only empowering the agricultural sector but also empowering the farmers themselves.”
