ImpactAlpha, June 16 – Cyprus-based Vital Capital made loans from its $10 million relief facility to solar product manufacturer Sollatek and to agribusiness Privamnuts, which sources macadamia nuts for export from 10,000 smallholder farmers. The capital will help ensure business continuity at a time when “many impactful small- and medium-sized businesses in Africa face ongoing challenges,” said Vital Capital’s Nimrod Gerber (see, “The investment case for COVID relief for Africa’s essential businesses”).
Vital Capital runs a $350 million impact fund focused on Africa. The relief facility for companies not in Vital’s portfolio addresses “a clear imbalance between supply and demand for credit,” Vital’s Francisco Machado told ImpactAlpha.
Vital is cutting checks of up to $1.2 million for up to four years, with a six-month repayment moratorium.
Vital Capital last year also partnered with USAID’s Kenya Investment Mechanism on a separate effort to unlock $400 million for COVID-impacted small businesses.