In a significant move to enhance impact investment in Africa, the Mastercard Africa Growth Fund has declared substantial investments totaling $27 million in three prominent investment firms: Chui Ventures, VestedWorld, and SME Impact Fund.
Chui Ventures secures $9 million from the fund, VestedWorld receives $10 million, and SME Impact Fund is granted $8 million, marking a pivotal step in advancing impact-driven initiatives on the continent. This recent infusion of funds brings the total number of recipients supported by the Africa Growth Fund to five.
Preceding this development, the Mastercard Africa Growth Fund had previously made noteworthy investments, allocating $2.2 million to Aruwa Capital Management and $5 million to Inua Capital. Aruwa Capital, a women-led investment firm established in 2019, focuses on supporting women entrepreneurs and businesses catering to the needs of women. The firm has invested in various ventures, including Fastizers, CrowdForce, Taeillo, Pngme, and Lifestores Pharmacy.
Launched in December 2022, the Africa Growth Fund stands as a formidable financial initiative, boasting a total capital pool of $200 million. Positioned as a fund of funds, its primary objective is to address the financing gap within Africa’s impact investment landscape. The fund has garnered substantial support from key players in the investment ecosystem, including Investisseurs & Partenaires (I&P), ESPartners (ESP), Criterion Institute, Genesis Analysis, and Africa Communications Group. Together, these collaborators contribute not only capital but also a wealth of expertise to the fund’s operations.
The Africa Growth Fund operates on a multifaceted approach, extending beyond mere financial contributions. It provides a spectrum of support services to its portfolio companies, encompassing business development, fund advisory, communications support, and diversity and inclusion advisory. By offering such comprehensive assistance, the fund aims to empower its investees and foster an environment conducive to sustainable growth and positive social impact.
In a recent development, the fund has earmarked significant investments amounting to $27 million for three distinguished investment firms: Chui Ventures, VestedWorld, and SME Impact Fund. Chui Ventures secures $9 million, VestedWorld receives $10 million, and SME Impact Fund is granted $8 million. These strategic partnerships mark a pivotal step in advancing impactful initiatives across the African continent.
Expressing his enthusiasm about the recent investments, Samuel Akyianu,
Managing Director of the Mastercard Foundation Africa Growth Fund, remarked, “We are excited to welcome Chui Ventures, Vested World, and SME Impact Fund to our expanding family of investment vehicles. These strategic partnerships represent our ongoing commitment to fostering sustainable development in Africa through impactful investments.”
SME Impact Fund, a Tanzanian fund manager specializing in the agricultural sector, is among the notable recipients. With a focus on investments in Tanzania’s agricultural landscape, the fund has made 44 investments totaling over $15 million. Its impact extends to reaching 23,000 smallholder farmers, contributing significantly to job creation with more than 3,000 jobs generated.
These investments underscore Mastercard’s steadfast commitment to driving positive change in Africa. By supporting impactful initiatives and fostering sustainable development across diverse sectors, Mastercard is actively contributing to the continent’s economic and social progress. The Africa Growth Fund, with its strategic collaborations and targeted investments, serves as a beacon for catalyzing transformative change and addressing critical challenges in the pursuit of a more resilient and prosperous Africa.