BFA Asset Management, the investment management firm of Banco de Fomento in Angola, launched Kimbo Fund to provide growth capital to small and mid-sized businesses in the country. It has completed a convertible note to FoodCare, a woman-led food processor of 25 commodities ranging from cassava to coffee.
The note, originated in dollars rather than Angolan kwanzaa, will support FoodCare’s export growth to the US and Europe. Exports to the two markets already account for nearly all of the business’s revenues. “Our capital is not to test the business model, but to grow the business,” BFA’s Rui Oliveira said.
Capital fit
The convertible note is an example of BFA’s use of flexible financing that aligns with local businesses’ growth needs. Kimbo Fund writes checks of $250,000 to $2 million for companies in financial services, food and agriprocessing, and mobility and logistics. Conventional debt or equity is a poor fit for many Angolan small and mid-sized businesses, as well as those in other African countries.
“Angola is not a place where you can tick those boxes. It’s a place where you have to use different instruments and different creative structures,” Oliveira said. “My big bet is that we are going to be much more successful because we’re not ticking boxes.”
Local backers
BFA is halfway to its $20 million fundraising target for Kimbo Fund. The fund was anchored with $5 million from the Angola Sovereign Wealth Fund in 2024. The fund uses debt and other liquid instruments, which LPs prefer in a difficult fundraising environment (see, “In impact fundraising drought, novel strategies and private credit stand out and, yes, size matters“).
“Whoever comes along with us has to appreciate our creativity,” said Oliveira. The firm expects the remaining capital will come from local and diaspora family offices.
