BUILD fund raises $60 million for small and growing businesses in Africa

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, May 5 — BUILD, a fund launched by the U.N. Capital Development Fund and Bamboo Capital Partners, will invest in impact-focused projects led by small and medium-sized enterprises, or SMEs, in least-developed countries, particularly those in Africa.

The fund received $60 million in commitments, including $10 million each from Nordic Development Fund and U.S. Development Finance Corp. The Swedish International Development Cooperation Agency, with DFC, will provide $10 million in loan guarantees. Global Affairs Canada allocated $19 million in first-loss capital.

Small and mid-sized enterprises in sub-Saharan Africa, which account for 60% of jobs, face a $330 billion funding gap, according to the World Bank.

Climate resilience pipeline

Separately, FSD Africa will invest $3.3 million over four years in an initiative with BFA Global to invest in high-growth startups fostering resilience in climate-vulnerable communities in Africa…

A partnership between African Guarantee Fund and Ecobank will provide $2.6 million in loans for small businesses in the green economy, mainly those led by women…

And Washington, D.C.-based C-Quest Capital secured a $10 million line of credit from FMO and BIX Capital to distribute clean cooking stoves to seven million households in 15 sub-Saharan countries by 2026.