Introducing the Mastercard Foundation Africa Growth Fund - Part two
Two-part series with Investisseurs et Partenaires (I&P) and Mennonite Economic Development Associates (MEDA).
Sam Akyianu opens the episode speaking about Mennonite Economic Development Associates (MEDA) – since 1953 operating in Africa, Asia, South America and Eastern Europe, MEDA has invested in development based on providing capital, skills, and resources to displaced and disadvantaged entrepreneurs 03:48. Working through intermediaries MEDA is better able to reach SMEs in different locations, as lead of the Mastercard Foundation Africa Growth Fund (MFAGF), MEDA aims to invest in 20 investment vehicles across the continent reaching 200 SMEs with capital and business development services 07:00.
The MFAGF brings together a consortium of partners working together to enable and facilitate decent job opportunities for youths and women particularly 09:08. Out of a pipeline of 180 investment vehicles, two companies have been selected with Aruwa Capital Management reaching final close securing $20million with 6 investments already sustaining ~450 direct jobs and ~21,000 value chain jobs 16:43.
The business development facility will work though investment vehicles and fund managers focussed on value creation, functional management, and compliance, including legitimacy to operate 20:44. Sam then goes on to discuss the Environmental Management System created by MEDA utilised during the due diligence phase to help portfolio companies to meet environmental and social management of their business. Sam closes by explaining the unique and necessary opportunity for African led investment vehicles to be able to access capital through the MFAGF where there is a lack of African institutional investors 27:07.
You can keep up to date with the Mastercard Foundation Africa Growth Fund’s latest developments via the following channels here:
Twitter: @Africagrowthfnd
LinkedIn: @Africagrowthfund
Facebook: @Africagrowthfund
About the fund
The Mastercard Foundation Africa Growth Fund (MFAGF), is a bold initiative—a Fund of Funds—that works through African Investment Vehicles to support early-stage, growth-oriented SMEs on the continent, launched today with a committed $200 million (USD). The goal of the Mastercard Foundation Africa Growth Fund is to enable dignified and fulfilling work for young people, particularly young women. The Fund-of-funds is catalytic, helping to crowd in capital for African entrepreneurs by strengthening and de-risking African Investment Vehicles that are committed to advancing gender equity in entrepreneurship.
In addition to providing capital for fund managers, the MFAGF will offer a business development facility for their investment vehicles’ portfolio companies. The Fund-of-Funds initiative will use gender-lens investing (GLI) principles to help advance the Mastercard Foundation’s Young Africa Works strategy, which aims to enable 30 million young people in Africa, particularly young women, to access dignified and fulfilling work by 2030. So far, the Fund-of-Funds has recruited two Investment Vehicles supporting entrepreneurial growth- one in East Africa and one in West Africa. Mennonite Economic Development Associates (MEDA) is the lead for the MFAGF.
