Kenyan firms benefit from Sh25bn funding
From left: Amma Lartey - CEO, Impact Investing Ghana, Ms Aline Varre -Director of Strategy and Business Development, PIND Foundation, Dharshan Wignarajah - UK Director, Climate Policy Initiative, Eric Osiakwan.
Kenyan enterprises are among thousands of those set to benefit from a new $200 million (Sh25 billion) funding targeting to catalyse investment across different sectors, by offering capital to promising startups.
The funding was announced by African Venture Philanthropy Alliance (AVPA) in partnership with Children’s Investment Fund Foundation (CIFF) and Prosper Africa as they launched a catalytic pooled fund in Nairobi on Tuesday, before mobilizing the funding.
Among the sectors targeted to benefit most from the funding are agribusiness, manufacturing, health and education.
“This fund is designed to de-risk high-impact social investments, unlock new markets, and scale effective solutions, ultimately fostering sustainable development and inclusive growth across Africa.” Said AVPA CEO Frank Aswani.
The organizations are targeting to benefit businesses that have been left out and starved of the much-needed capital by traditional financing institutions, despite their potential to catalyse development in sectors supporting the attainment of sustainable development goals (SDGs).
They said the catalytic pooled fund targets raising the Sh25 billion ($200 million) over the next five years, from both African and global philanthropies, alongside government donors.
The funding is expected to leverage up to $2 (over Sh250) billion in private capital.
“Africa faces a $200 billion annual SDG financing gap, and with diminishing aid and rising public debt, the CPF is critical in crowding in private capital to address these challenges,” said Dr Aswani.
The organizations said the fund will prioritize sectors critical to sustainable growth, such as agribusiness, education, healthcare, and renewable energy, while addressing cross-cutting themes like inclusive supply chains, climate change, women’s economic empowerment, youth empowerment, and job creation.
They said the fund would not only meet unmet financing needs in the continent, but also tap into an estimated $1.8 trillion dormant domestic capital held by insurance companies, pension funds, and bank accounts.
“Africa’s future growth hinges on harnessing its untapped domestic capital. By providing the right blend of catalytic capital and strategic enablers, we can close the bankability gap and de-risk high-impact projects,” said CIFF’s Executive Director for Africa, Faustina Fynn-Nyame.
The Catalytic Pooled Fund also includes provisions for technical assistance to high-impact projects, strengthening investor confidence by addressing perceived risks and demonstrating the viability of sustainable solutions
