Pillar: FSD Africa Investments

FSDAi Nyala Facility invests US$ 1 million in First Circle Capital Africa Fund

Posted on by Kihingu Inc

FSDAi Nyala Facility invests US$ 1 million in First Circle Capital Africa Fund I FSDAi Nyala Facility BV, a facility set up by FSD Africa Investments to invest in emerging local capital providers is injecting US$1 million into Africa-based specialist VC fund First Circle Capital. Run by former entrepreneurs and fintech executives Selma Ribica and Agnes Aistleitner Kisuule, First Circle invests in the continent’s most promising early-stage financial technology companies, leveraging the partners’ industry network and expertise with an angel investment track record at 33x MOIC.

First Circle focuses on insurtechs, financial infrastructure and climate fintechs. Other areas the fund
invests in is fintech Software as a Service (SAAS), Reg Tech and Alternative Lending Model firms. The team has built a portfolio of 13 investments so far in these areas, across 7 African markets.

Announcing FSDAi Nyala Facility’s investment, FSDAi’s Chief Investment Officer, Anne-Marie Chidzero said: “We are thrilled to back this promising GP team of remarkable female investors. First Circle stands out in the market as a thesis-led specialized fund with great depth of expertise and strategy in the fintech sector. We believe that FSDAi Nyala Facility’s backing will catalyse more institutional LPs into First Circle Capital Africa Fund I”.

According to BCG and the recent QED report, Africa is the fastest growing fintech region in the world, expected to grow its revenues by a staggering 13x by 2030. In Africa, fintech is well posed to resolve financial services access issues for the continent’s excluded and underserved population and SMEs, and to address its young population’s needs. Most Africans’ first interaction with the financial services sector may be through their smartphones, and BCG projects a fintech revenue CAGR of 32% until 2030, with South Africa, Nigeria, Egypt, and Kenya being the key markets.

Selma Ribica and Agnes Kisuule, Co-Founding partners of First Circle Capital commented:

“Expanding access, availability and stability of financial services for African consumers as well as SMEs is critical for economic development and social resilience. The majority of fintech funding to date has gone into payments, hence investing in the next layer of financial services poses a significant opportunity. We are investing in Africa’s most innovative entrepreneurs building the next layer of financial products, that enable and expand access to financial services for individuals and SMEs across Africa. We are excited to have FSDAi Nyala Facility as our first institutional partner, especially given FSD Africa’s track record in deepening access to financial services on the continent.”

Co-founders and managing partners are former M-Pesa executive and FinTech investor Selma Ribica based in Morocco and former emerging markets entrepreneur Agnes Aistleitner Kisuule based in Kampala. Selma’s angel portfolio is at 33x MOIC in early stage fintech and includes companies such as Qonto, Tabeo, Expensya and Agnes has previously built businesses in Jordan, Ukraine and Uganda.

The fund has offices in Kampala and Casablanca. With their team, the managers are leveraging their operational know-how as successful operators, previous track record, and strong network across Africa and internationally to support portfolio companies with fundraising and growth.

First Circle Africa Fund I is backed by FSDAi Nyala Facility, Axian Group, and several serial entrepreneurs and investors.

 

FSDAi Nyala Facility invests US$ 1 million in Linea Capital to boost funding opportunities for small and growing businesses in South Africa.

Posted on by Kihingu Inc

FSDAi Nyala Facility BV, a facility set up by FSD Africa Investments to invest in emerging local capital providers, is injecting US$1 million into Linea Capital, a South Africa-based financier. Linea Capital specializes in revenue-based finance (RBF), an innovative model that supports the growth of Small and Growing Businesses (SGBs).

Most SGBs on the continent are faced with limited funding options, and this is no different in SouthAfrica. Traditional debt either requires significant collateral or is unaffordable, while equity investments dilute ownership, control and long-term economic value and often involve lengthy negotiations on valuation.

By contrast, Linea Capital’s revenue-based financing solution is a collateral-light and non-dilutive source of capital, with repayments structured around the company’s revenue cycle to reduce the burden of fixed monthly repayments. Although driven by the investee’s revenue growth, the typical term of Linea’s financing ranges between 2 and 3 years. Linea also offers a range of post-investment support services aimed to help businesses manage growth.

FSDAi Nyala Facility’s investment will be through junior funding tranches to enable Linea to raise lower cost senior debt, with the intention of crowding-in local and global institutions seeking lower risk and more liquid non-equity investments.

This is the Facility’s third investment; previous investments include Aruwa Capital Management, a Nigeria-based fund that targets growing companies that either serve the expanding female economy or are led by women or gender-diverse teams, and WIC Capital, a Senegal-based manager that not only provides much needed capital but also technical assistance and access to business networks for female-led businesses in the region.

Speaking during the announcement, FSD Africa Investments’ Chief Investment Officer, Anne-Marie Chidzero hailed the novel financing instrument. “We are excited to collaborate with Linea Capital to accelerate local financing for small and growing businesses. This investment demonstrates FSDAi Nyala Facility’s mandate of backing innovative financing solutions that position these businesses to thrive and drive economic growth,” noted Anne-Marie.

Linea Capital cofounders Julia Price and Colin Hundermark welcomed the investment which will translate to an attractive capital alternative for small and growing South African companies “We are delighted that FSDAi Nyala Facility is making this investment with us. It provides further support for revenue-based financing as an alternative for the owners and founders of SGBs in South Africa, and we are excited about how it will assist us in raising further capital to support the growth of a vital segment of our economy,” they explained.

FSD Africa Investments and Allied Climate Partners collaborate to attract catalytic equity to African funds focused on early-stage, climate-related opportunities

Posted on by Kihingu Inc

FSD Africa Investments and Allied Climate Partners have today entered into an Memorandum of Understanding and will partner to address a critical financing gap for climate infrastructure, mitigation and adaptation in Africa. This aligns with the core missions of both organizations: to increase the number of bankable opportunities for climate-related investment, increase private sector participation, improve livelihoods, and mitigate the effects of climate change across Africa.

FSD Africa Investments (FSDAi) invests to make finance work for Africa by allocating catalytic capital to market shaping instruments, intermediaries and infrastructure and has cumulatively invested US$ 105 million with a portfolio of 19 projects.

Allied Climate Partners (ACP) seeks to aggregate approximately US$ 825 million backed by US$ 235 million in philanthropic capital to support the establishment of third-party funds, platforms, and other investments in early and development stages of climate-related projects in Africa, Southeast Asia, India, and the Caribbean & Central America. Allied Climate Partners invests junior, first-loss equity in regionally focused third-party funds. ACP announced its inaugural investment into the Southeast Asia Clean Energy Fund II, managed by Clime Capital, in January, and is seeking to replicate similar investments in other regions.

Speaking during the MoU signing ceremony on the sidelines of the ongoing AVCA annual summit in Johannesburg, South Africa, FSDAi Chief Investment Officer Anne-Marie Chidzero hailed the collaboration as one that will support Africa to meet her ambitious climate finance goals.

“For the African continent to meet her NDCs, we must raise tenfold current annual climate finance levels to US$ 277 billion, and the share of private capital to at least US$ 100 billion. Working with ACP, we will be able to catalyse and crowd in more innovative and green finance for greater action”, said Chidzero.

ACP Chief Executive Officer Ahmed Saeed noted that this collaboration will drive innovation across the African continent, specifically mobilising more climate finance for Africa.

“There is a critical gap in climate finance, and specifically risk-oriented equity, available for emerging and developing economies to meet climate and energy transition goals. We are thrilled to partner with FSDAi, a pioneering organisation at the forefront of strengthening private sector participation and financial markets in Africa. Together, we hope to attract more risk-oriented capital for early-stage investments in Africa, by establishing new, catalytic, blended finance solutions that will leverage public and private capital to tackle the climate crisis”, explained Saeed.

Working in concert, FSD Africa Investments and Allied Climate Partners will identify, evaluate, and seek to invest in highly catalytic financing solutions in Africa that increase investment for early-stage project development and companies deploying climate-related infrastructure in Africa. The sectors to be targeted owing to their potential to accelerate a low-carbon transition and improve livelihoods include: clean energy generation and transmission; electric transportation; green industry; and, water and waste management. Selected investment managers will seek to invest in high-leverage and catalytic projects, platforms and companies with demonstrable and positive impact on climate in Africa, and which have the potential to mobilise third-party capital at scale.

The role of capital in catalysing the development of a more sustainable Africa

Posted on by TIMOTHYRADIER

Coordination problems are hard! Solving them represent potential for massive returns. The paradox of “insufficient demand” for already available capital pools, and the taunted “financing gap” on the other is perhaps a famous coordination problem in development finance circles.

If capital was a person, she would have to be ambitious – while avoiding hubris, readily embrace ambiguity showing a deep interest in, and a belief in a more prosperous future. She would have natural aptitude for building strong relations and for solving hard relational problems – while not being suicidal. She would be agile – showing great ability to renew herself for new emerging risks and opportunities. She would need to have training in management of trauma and disappointment, all while embodying a philosophy of optimism.

She would brush up on her Keynesian economics and contemplate its implications in the context of low productivity in Africa, ongoing debt distress, and weak institutions of political governance.

Africa needs capital that is fearless, brave, and courageous – intrepid. A form of capital that works on two sides of development, it will serve to accelerate capital flows on one hand, and work to unlock demand on the other. Her vision will draw from two themes – first, an ambition to deeply explore and design paths to solving Africa’s intractable development and second, an ambition that anticipates nasty surprises all the while building partnerships, institutions, and incentives to get things going. An ambition that fuses understanding with execution.

At FSDAi, we are working hard to solve these problems and provide risk-bearing, early-stage capital in innovative forms to support venture-building stage capital allocators who combine capital with other critical support to businesses at the start-up and early stages. We are also working to develop new asset classes – across private credit, guarantees, and alternatives among others. To do this well, we work from the ground up to ensure we understand the demand side of capital – interrogating market conditions, through partners, building a pipeline of investable opportunities, and addressing talent gaps. FSDAi works too on the capital formation side, providing catalytic capital that makes it easier to attract new forms of capital.

In markets, tailwinds can quickly become headwinds. As the global inflation has shown, capital flight is all too easy. The inflationary pressures were not always obvious, and most countries in Africa were focused on kickstarting their economies from the ravages of the Covid pandemic when the inflationary headwinds hit. Africa faces weak economies, high unemployment rates and low productivity and debt overhang – local and external. Backing enterprise is not equivalent to putting out your sail; and yet, optimism of the future of Africa should be fused well with certainty of turbulence in markets over time.

Africa will need capital that encourages entrepreneurs to emerge. That will mean finding capital that is patient and that can catalyze other capital to flow onto the continent. Capital that can persuade local pension funds to invest. The current equilibrium is unsatisfactory – there is not enough capital that accepts disproportionate risk, enables third-party investment that otherwise would not be possible, and is long term. Capital at start-up, early, venture-stage and SME growth capital is still severely in short supply.

Local capital is all too often preserved in money markets and government treasuries and only trickles into the real economy. Capital flows to address early-stage ventures is especially limited as most fund managers are too risk-averse and impatient. Even when they take risks, venture funds are pack hunters – signalling each other to back the same ventures.

To truly address the demand side – enterprises that have ambitions to build sustainable infrastructure, innovate to cut pollution, manage just transitions, and spur investment across a wide range of sectors will be essential.

FSDAi and FSD Africa are working on innovations to catalyze capital flows across the continent. These initiatives include supporting structures that facilitate risk transfer mechanisms including credit enhancement and mechanisms to manage foreign currency risks. In addition to backing fund managers to build capacity and accelerate investment in climate. Other initiatives have included investing in themed investment structures that can respond to specific priorities such as affordable housing, agriculture, or even investments towards green transition.

FSDAi has been supporting capital allocators by enabling blended structures. In these structures, FSDAi provides risk-bearing equity that shields private capital that is less courageous. Convertible instruments is another tool in FSDAi’s stable – allowing conversion to equity upon success

Unlocking capital through demonstration is also a tactic that we have deployed. This allows founders with credible business models to access capital early, test and raise further capital on the back of a tested business model.

FSDAi is working to provide mechanisms to test, accelerate and mobilise capital at scale to address these demand and supply side issues to deepen access to inclusive and functional financial markets. In return, ventures will emerge to address the climate challenge. When more appropriate capital is available, more of these ventures will thrive.

FSD Africa and African Guarantee Fund partner to boost Green SME Financing

Posted on by TIMOTHYRADIER

Nairobi, Kenya, 09 February 2024: FSD Africa, a pioneering development agency committed to reshaping Africa’s long-term financial landscape, and the African Guarantee Fund (AGF), a leader in promoting financing of Small and Medium-sized Enterprises (SMEs) across Africa, have today signed a strategic Cooperation Agreement aimed at propelling the growth of Green SMEs by providing critical financial support, technical assistance, and capacity building.

The Cooperation Agreement outlines a detailed framework collaboration between the organizations in boosting sustainable development in Africa. The main aspects of this partnership involve assisting in the development of financial products for institutions, offering partial credit guarantees for bonds and funds raised on behalf of SMEs, and conducting capacity-building events.

FSD Africa and African Guarantee Fund partner to boost Green SME Financing

Furthermore, by providing financial support and fostering business growth, Green SMEs ae expected to play a pivotal role in reducing CO2 emissions. This active contribution aligns with the overarching goal of preserving the environment and facilitates access to finance for business growth and empowering SMEs to generate and sustain employment opportunities, especially for youth and women.

Speaking during the agreement signing, Mark Napier, Chief Executive Officer of FSD Africa said: “This partnership represents an important milestone in our efforts to foster sustainable economic development in Africa. By leveraging the strengths of FSD Africa and the African Guarantee Fund, we will actively create a robust ecosystem that empowers Green SMEs. This collaborative effort aims at facilitating access to affordable long-term funds, thereby accelerating the transition towards a greener and more resilient economy.”

Jules Ngankam, AGF Group Chief Executive Officer said: “Fostering a green economic transformation in Africa is one of our key priorities. Through this partnership, AGF will provide financial institutions with bank fundraising guarantees to enable them access affordable funds aimed at facilitating loans to SMEs investing in low carbon and climate resilient businesses. Additionally, AGF will extend partial credit guarantees to lenders in a bid to enhance credit accessibility for Green SMEs, empowering them to flourish and make meaningful contributions to environmental conservation.

The two organisations will also provide technical assistance on green financing initiatives, which is critical in building the capacity of key stakeholders such as Governments, Financial Institutions, and Green SMEs.

For more information, please contact:

FSD Africa
Nelson Karanja
Director, Communications, and Engagement
Email: nelson@fsdafrica.org

African Guarantee Fund
Diana Aluga
Group Communications & Public Relations Officer
Email: diana.aluga@agf.africa

About African Guarantee Fund

African Guarantee Fund (AGF) is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since inception, AGF has unlocked more than USD 3.5 billion in SME financing, through partnerships with 200 partner financial institutions across 40 African countries.

AGF is backed by the following shareholders and sponsors: The Government of Denmark through the Danish International Development Agency (DANIDA), the Government of Spain through the Spanish Agency for International Cooperation (AECID), the African Development Bank (AfDB), French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), German Development Bank (KfW), French Agency for Private Sector (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID’s West Africa Trade & Investment Hub (WATIH), TechnoServe and Mastercard Foundation.

African Guarantee Fund is rated AA- by Fitch Ratings.

For more information, please visit: www.agf.africa

Letter: Current package of half measures can’t cure Africa’s debt crisis

Posted on by TIMOTHYRADIER

Moritz Kraemer’s Markets Insight piece (January 19) rejects the suggestion that the downgrading of African sovereign eurobonds is evidence of an anti-African bias. If anything, Kraemer argues, the credit rating agencies have been rating too generously, evidenced by figures showing the default ratio for B-rated African countries has historically been much higher than the global average.

But the data he presents to support this is patchy. African countries do not have a long history of ratings or even market access and in any case this fails to explain why African countries routinely have to pay more for their debt than Latin American countries with similar or riskier profiles.

Where he is right, however, is that criticising rating agencies will not help to solve the debt crisis affecting more than half the low-income economies in sub-Saharan Africa.

The seriousness of the situation cannot be overstated. These countries are paying an average of 31 per cent of revenues as debt service. This leaves little room for spending on development after recurrent expenditure is accounted for. As a consequence, gains on the poverty front are eroding quickly. The World Bank predicts that across sub-Saharan Africa, per capita gross domestic product, which has not increased since 2015, will drop at an annual average rate of 0.1 per cent over the 10 years to 2025, by when the number of people living in absolute poverty will have reached 472mn, or 37 per cent of the region’s population.

Addressing this situation will need more than the current package of half-measures which are aimed at addressing the liquidity problem for market access countries. Africa’s debt crisis is also a solvency one with developmental ramifications. What is needed is a comprehensive approach: the equivalent of the Heavily Indebted Poor Countries (HIPC) initiative, which the World Bank and IMF launched in 1996 to ensure that no poor country faced an unmanageable debt burden.

But safeguards should be put in place to address the moral hazard of debt forgiveness. There should also be much greater attention on reforming the Common Framework — the G20’s mechanism for dealing with insolvency and protracted liquidity problems — to facilitate orderly and quicker debt restructuring for those market access countries that would need to do so.

Evans Osano
Director, Capital Markets, FSD Africa

Read original article

FSDAi Nyala Facility Extends $1mn to WIC Capital to Boost Gender Lens Investing

Posted on by TIMOTHYRADIER

FSDAi Nyala Facility BV has extended a USD 1 million loan to WIC Capital, a local capital provider investing in Senegal and Côte D’Ivoire that focuses on financing women-owned and managed Small and Growing Businesses (SGBs).

WIC Capital is led by Ms. Evelyne Dioh Simpa, a Fund Manager with a wealth of finance experience and supported by a robust team and board.

WIC Capital has a strong alignment with FSDAi Nyala Facility due to its unwavering commitment to promoting access to finance for female owned SGBs needed to expand their businesses.

For example, in Senegal, a mere 3.5% of women entrepreneurs access credit from financial institutions.

WIC Capital focuses exclusively on investing in businesses owned and/ or led by women, demonstrating that the financing gap for female-owned enterprises in West Africa can be addressed.

Furthermore, WIC Capital stands out for its innovative product structures tailored to local SGBs.

Notably, its origins in an exclusive women’s angel network, adds to its uniqueness within the FSDAi Nyala Facility portfolio, making it an invaluable learning opportunity for all investors in the small and growing businesses investing ecosystem.

Women entrepreneurs in Africa not only encounter challenges when it comes to access to finance but also grapple with the scarcity of platforms offering the essential knowledge and assistance required for the expansion of their businesses.

WIC Capital works with early-stage, women-owned/ led enterprises to provide first-time external capital as well as business training and mentorship.

Also, WIC Capital leverages a large network of successful women entrepreneurs and civic leaders to co-fund and support these emerging businesses.

The business training and mentorship is provided by the WIC Académie through a technical assistance program.

Alongside the women’s angel network, other funders of WIC Capital include foundations, multilateral donor agencies, and development financial institutions.

“Through its investment in WIC, FSDAi is backing an African women-led capital allocator with deep local angel networks, a creative funding structure and financing solution for small and growing businesses in West Africa. With our investment, WIC can position itself to attract bigger pools of capital to expand its strategy in Senegal and Cote d’Ivoire,” noted Anne-Marie Chidzero, Chief Investment Officer at FSD Africa Investments.

“I am proud that the UK is investing US$1 million in WIC Capital through Financial Sector Deepening Africa Investments. I have seen first-hand WIC Capital’s inspiring work and know that they are a deeply impact-focused organisation. They support young female entrepreneurs in a market where access to funding is a huge barrier for their growth. At the heart of building sustainable and inclusive businesses lies the need to advance gender equality through women’s economic empowerment. I look forward to continuing our collaboration to create jobs and empower Senegal’s talented women,” noted Juliette John, UK Ambassador to Senegal. 

“FSDAi is playing a critical role in the development of an emerging asset class of small business growth funds Africa, particularly women-led funds. The funding of WIC Capital represents an important confirmation of WIC’s innovative approach to financing early-stage women businesses in West Africa.  By melding their business development services, women investment club mentoring with investment capital, WIC provides a comprehensive approach to the challenges that to date have constrained Africa’s women-led businesses to growth and thrive.  We believe this commitment will be the foundation upon which other DFIs and local institutional capital holders can also provide funding to WIC Capital and other innovative local capital managers seeking to invest in Africa’s women businesses,” noted Drew von Glahn, Executive Director of the Collaborative for Frontier Finance.

“WIC Capital’s mission aligns with FSDAi’s desire to address the disfunctions of African capital markets, which include the structural barriers that small businesses face in accessing financing, specifically when they are women led. This partnership will be catalytic in the development of a local capital provider that has the potential to profoundly change the local ecosystem, by providing risk capital and business support to women led small and growing businesses (SGBs), with the ultimate goal of increasing women’s agency and economic benefit. With this investment, we are closing our first fund, and we believe this partnership will help accelerate the mobilization of our second fund to serve SMEs generating a strong impact in Senegal and Côte d’Ivoire,” concluded Evelyne Dioh, Managing Director of WIC Capital.

Read original article

Right Honourable Andrew Mitchell MP joins stakeholders at COP28 to celebrate progress on the newly incorporated Dhamana Guarantee Company

Posted on by TIMOTHYRADIER

5th December 2023

Dubai, United Arab Emirates: On the dedicated Finance Day of COP28, the Right Honourable Andrew Mitchell MP, Minister of State of the United Kingdom for Development and Africa, joined Kenyan government and stakeholder representatives in the UK Pavilion to celebrate progress on the newly incorporated Dhamana Guarantee Company Limited (Dhamana). The new guarantee company has been created to unlock local capital for sustainable infrastructure and projects that will advance climate change mitigation and adaptation efforts across East Africa.

Dhamana was established in Nairobi, Kenya, by InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), and Cardano Development with support from FSD Africa. The company draws on the success of other PIDG-supported credit enhancement facilities, InfraCredit Nigeria and InfraZamin Pakistan, and recently received significant funding commitments from the African Development Bank (AfDB) and CPF Financial Services (CPF), who were represented alongside PIDG at the meeting with Mr Mitchell in Dubai.

Mr Mitchell said, “As our recent white paper set out, the UK is committed to supporting countries that want to draw on their own resources to tackle climate change. This investment will provide the guarantees needed to enable Kenyan pension funds to fund climate resilient infrastructure in Kenya. It is fantastic to see that PIDG, Cardano Development and FSD Africa are collaborating with the Africa Development Bank and a Kenyan pension fund to deliver this new approach and demonstrate how African resources can be used to fund African development.”

Dhamana’s initial focus of operations will be in Kenya, a country which holds significant wealth in pension,i life insurance and private wealth funds. However, in Kenya, as for much of East Africa, cash- flow based investments and infrastructure projects are largely reliant on US dollar denominated bank loans. Such loans seldom have sufficient tenor length to ensure project success, and can expose borrowers to currency exchange risk, challenges which Dhamana’s local currency guarantees will serve to mitigate.

Dhamana CEO, Christopher Olobo, said, “The focus of COP28 is around the need to unite, act and deliver for climate action. Dhamana epitomises this ethos by bringing partners together to facilitate a step-change in how we finance East Africa’s development, accelerate access to climate-resilient infrastructure and achieve the UN SDGs. With the backing of our shareholders, Dhamana will strengthen local capital markets, connecting bankable projects with untapped pools of domestic institutional capital and ensuring that investors have the comfort they need to use their funds for positive change.”

InfraCo Africa’s CEO, Gilles Vaes, said, “We are extremely proud of the work undertaken by all parties to establish Dhamana, and to attract significant funding commitments which will enable it to deliver on its vision.” Emphasising the significance of Dhamana for climate action, PIDG CEO, Philippe Valahu, said, “As part of the wider PIDG suite of credit enhancement facilities, Dhamana’s local currency guarantees will support the growth of local capital markets, unlocking domestic capital to underpin a thriving ecosystem for climate-resilient infrastructure and project development across East Africa.”

Joost Zuidberg, CEO Cardano Development enthusiastically stated, “The power of Dhamana lies in its ability to catalyse substantial investments from East Africa’s institutional capital, fortifying the bedrock for the sustained financing of the region’s burgeoning economic landscape. At the heart of Cardano Development lies our incubation and management of guarantee solutions for emerging and frontier markets, we are delighted to work alongside AfDB, County Pension Fund, InfraCo Africa, PIDG and FSDA on this innovation and together empower Dhamana with the essential support and capital required to realise this pivotal mission.”

Mark Napier, CEO FSD Africa said, “FSD Africa is committed to supporting local currency bond markets in Africa as well as local currency credit enhancement facilities as they play an important de-risking role. This role is pivotal in the mobilisation of climate finance from both local and international owners of capital to African economies that require different sources of capital to fund their green growth. FSD Africa is particularly pleased to provide seed funding for Dhamana Guarantee Company Limited’s Technical Assistance Facility which will provide project preparation and transaction support to potential issuers of innovative climate financing debt instruments, thereby increasing the pool of bankable climate-resilient projects in East Africa.”

Following the recent announcement of the African Development Bank’s Board approval for a US$10m equity investment into Dhamana, AfDB Vice President for Private Sector,

Solomon Quaynor, said, “Dhamana’s credit enhancement offering aligns well with several of AfDB’s strategic objectives, including our commitment to stimulating local currency debt markets as a route to unlocking new sources of green and sustainable finance for the real sector and infrastructure development across East Africa.”

Dr. Hosea Kili, CEO of CPF concluded, saying, “CPF Financial Services is excited to be part of the investors in Dhamana, a new guarantee company to serve the East African region. Dhamana is envisioned to unlock local currency debt from untapped pools of capital in Kenya and the East Africa region, providing guarantees for local currency bonds invested in by East African pension funds, insurers, and other financial institutions. This guarantee fund will enable infrastructure and other sectors to raise more money locally in KES, without the borrowers suffering from KES-to-USD devaluation.”

 

Dhamana Guarantee Company (Dhamana):

Dhamana is working to catalyse the development of domestic capital markets in East Africa. It does this by connecting significant untapped pools of domestic institutional capital with the real economy, such as new green infrastructure, and providers of credit to individuals and businesses. This increases access and the affordability of local capital, providing new low-risk opportunities for local investors. Dhamana will also serve to provide a portfolio of businesses with access to the local currency capital needed to deliver bankable projects, meeting the high demand for new affordable housing, transportation, water, and energy infrastructure, and promoting long term economic development. www.dhamana.com

The Private Infrastructure Development Group (PIDG)

PIDG is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity, and impact. Since 2002, PIDG has supported 211 infrastructure projects to financial close which provided an estimated 222 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. www.pidg.org

InfraCo Africa:

InfraCo Africa is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects and by providing project development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). www.infracoafrica.com

Cardano Development:

Cardano Development (CD) is an incubator and fund manager, established in 2007. Through careful risk-management analysis in data poor settings, CD identifies scalable solutions that can help to make frontier financial markets more inclusive, investible, and sustainable to unlock lasting economic value. CD creates scalable solutions for currency, credit, and liquidity risks in these markets. With over USD 6 billion assets and USD 2.5 billion capital under management, CD supports eight scale-up funds: TCX, GuarantCo, Frontclear, BIX Capital, ILX Fund, IMFact, AGRI3 Fund and Nyala Venture. As well as six start-ups: NASASA CD, Octobre, Social Infra Ventures, The Development Guarantee Group, The Green Guarantee Company and new guarantee company with ongoing management services and corporate governance oversight. www.cardanodevelopment.com.

FSD Africa:

FSD Africa is a specialist development agency working to help make finance work for Africa’s future. Based in Nairobi, FSD Africa’s team of financial sector experts work alongside governments, business leaders, regulators, and policymakers to design and build ambitious programmes that make financial markets work better for everyone. Established in 2012, FSD Africa is incorporated as a non-profit company limited by guarantee in Kenya. It is funded by UK aid from the UK government. www.fsdafrica.org

 

African Development Bank (AfDB):

The AfDB Group is a regional multilateral development finance institution established to contribute to the economic development and social progress of African countries that are the institution’s Regional Member Countries (RMCs). The AfDB was founded following an agreement signed by member states on August 14, 1963, in Khartoum, Sudan, which became effective on September 10, 1964. The AfDB comprises three entities: the African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). As the premier development finance institution on the continent, the AfDB’s mission is to help reduce poverty, improve living conditions for Africans and mobilise resources for the continent’s economic and social development. www.afdb.org

CPF Financial Services (Kenya):

CPF is a leading financial institution with its core in Pensions Management, boasting a substantial fund value of USD 1.06 billion in Assets Under Management. The institution has a strategic footprint extending across East Africa, providing a wide range of services, including Fund Administration, Trust Fund Services, Digitization, Archival Services, Training and Management Consulting. The CPF Group has subsidiary companies across various sectors including Laser Infrastructure & Technology Solutions (LITES), Laser Property Services, Laser Insurance Brokers (LIB), CPF Asset Managers and Rukisha Advances Solutions (a cutting- edge payments platform). www.cpf.or.ke

AfricInvest and Africa50 provide $20 Million in financing to Africa Healthcare Network (AHN) for a continent-wide expansion.

Posted on by TIMOTHYRADIER

Nairobi, Kenya, November 22, 2023 – Africa Healthcare Network (AHN), a leading provider of dialysis services in Africa, has secured $20 million in equity and debt funding, from Africa50 and AfricInvest, two leading African institutions, and Tokyo-based Ohara Pharmaceutical Co., Ltd.

The funding will enable AHN to accelerate its growth and address significant gaps in the availability of high quality, affordable renal care across Africa.

Africa50, which led the equity funding, invests in high-impact, high-growth businesses and projects across the continent. AfricInvest, which provided debt financing through its Transform Health Fund (THF), is a leading pan-African investment platform, dedicated to supporting businesses that drive economic growth and social development. THF is an innovative blended-finance fund that invests in locally-led health supply chain, care delivery, and digital solutions in Africa. Under the leadership of AfricInvest, along with the Health Finance Coalition, a group of leading global health funders hosted by Malaria No More, the fund finances enterprises that improve health system resilience and pandemic preparedness across the continent.

The investment will enable AHN to:

  • Expand Access to Care: AHN has 45 clinics today and plans to continue growing rapidly, entering underserved regions to expand access to life-saving treatment.
  • Enhance Technology and Disease Prevention: The funding will also accelerate AHN’s technological capabilities, including early identification and management of kidney disease.
  • Strengthen its Healthcare Workforce: AHN will further invest in training and development programs for its 500+ employees, continuing to elevate the standard of care.
  • Maximize Development Impact and Sustainability: Adhering to the highest ethical and ESG standards, AHN aspires to be a role model in healthcare and a force for good in its local communities.

Matt Williams, CEO of AHN, expressed his excitement, stating, “With the support of Africa50 and AfricInvest, we are well-positioned to make a dramatic impact in the fight against kidney disease and improve the overall healthcare landscape in Africa.”

Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50, remarked, “We are excited to be partnering with AHN to further their mission of improving access to quality kidney care across Africa. The AHN team has already achieved significant milestones, and we look forward to being part of the journey to impact more lives. This partnership is aligned with Africa50’s strategic focus on healthcare, a sector which can deliver both positive impact and attractive investment returns.”

Faisal Jiwa, Co-Lead of AfricInvest’s Transform Health Fund, added, “We are proud to be partnering with the entire team at AHN in its mission to improve access to quality, affordable healthcare services in Africa, which is fully aligned with THF’s impact-first strategic focus along the healthcare value chain. We believe AHN is uniquely positioned to build the healthcare ecosystem across the continent, led by a strong culture of impact and operational excellence.”

Nikhil Pereira-Kamath, Executive Chairman and Co-Founder of AHN, reiterated the power of the partnership, “We’ve seen tremendous growth in recent years, growing from 17 centers at the end of 2021 to nearly 50 centers and over 500 team members by year end 2023. With an acute focus on high quality patient care, we look forward to Africa50 and AfricInvest supporting our rapid expansion across the continent with the ambitious goal of achieving 100+ centers by 2025, and further growth beyond.”

The collaboration between AHN, Africa50, and AfricInvest underscores the importance of high-impact partnerships in addressing pressing healthcare challenges in Africa. As part of the transaction, AHN received support on completion deliverables related to the transaction from CrossBoundary, an advisory group focused on unlocking private capital in underserved markets.

About Africa Healthcare Network (AHN):AHN is a leading dialysis services provider in Africa, dedicated to improving access to quality healthcare for patients with kidney disease. AHN operates a network of dialysis centers across the continent, offering world-class treatment, state-of-the-art facilities, and a compassionate approach to patient care. For more information, visit: www.africahealthcarenetwork.com

About Africa50:Africa50 is an infrastructure investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 33 shareholders, comprised of 30 African countries (including the governments of Tanzania, Kenya, and Rwanda – all countries of operation for AHN), the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: www.africa50.com About AfricInvest:AfricInvest is a leading pan-African investment platform active in multiple alternative asset classes including private equity, venture capital, private credit, and listed equities. Over the past quarter century, we have raised more than $2bn to finance almost 200 companies at various development stages, delivering value and impact for our investors, portfolio companies, and the communities we serve. Our 100-strong team of investment experts in more than ten offices across three continents has a proven track record of providing attractive risk-adjusted returns while spurring productivity growth, creating jobs, and ultimately improving African lives through inclusive and sustainable development. For more information, visit: www.africinvest.com About Ohara Pharmaceutical Co., Ltd.:Ohara Pharmaceutical Co., Ltd is a pharmaceutical company with major business of orphan drug discovery and generic drug development and manufacturing. In particular, Ohara focuses on the orphan drugs in the field of childhood cancer and high quality accident-preventive generic drugs. Under the current rapidly changing environment where medical treatments and techniques are dramatically improving, we are pursuing providing total healthcare solutions with prevention, diagnosis and aftercare to enhance the quality of patient’s life. We are promoting to develop total healthcare programs in Asia and Africa in alliance with global innovators. For more information visit: www.ohara-ch.co.jp/english/  For media inquiries, please contact: Africa Healthcare Network: Saksham Bhandari, Chief of Staff, Tel: +254 700 420 113, saksham.bhandari@africahealthcarenetwork.com

Africa50: Nana Boakye-Yiadom, Senior Communications Coordinator, Tel: +212 666166308, n.boakyeyiadom@africa50.com

AfricInvest: Ann Wyman, Senior Partner, Tel: +216 71 189 800, ann.wyman@africinvest.com and Jordan Filko, Investment Manager, Tel: +254 725 705 773, jordan.filko@africinvest.com