ImpactAlpha, May 3 — Goodwell Investments is launching an impact fund to invest in African small businesses.
The Dutch impact investment firm aims to invest one-third of the capital in its fifth fund in ventures driving financial inclusion and one-quarter in agribusinesses. It also plans follow-on investments in existing portfolio companies like Kenyan rural e-commerce venture Copia, South African fintech MFS Africa and supply-chain financing company Nomanini, and Nigerian agriprocessor Tomato Jos.
“Businesses led by local entrepreneurs are the key drivers of inclusive growth in Africa,” said Goodwell’s Nico Blaauw.
Goodwell plans to roll the targeted €50 million ($60.1 million) fund into a larger institutional fund later this year. It’s a strategy Goodwell also used with its €100 million uMunthu fund, launched in 2017 (see, “Goodwell raises €20 million feeder fund for African impact investing“).
Goodwell has invested more than €150 million in 35 businesses in Africa and India.