An impact investment firm, Goodwell Investments has launched a new EUR 150 million fund that will help high-impact SMEs in Africa increase their market share and make their products and services more accessible and affordable for underserved African markets.
The newest Goodwell Investments fund, uMunthu II, is an institutional investment fund, that is strongly focused on inclusive growth and sustainable development in Africa as the Goodwell investment firm already has local staff in South Africa, Kenya, and Nigeria.
The uMunthu II fund will be co-managed by Alithea Capital, Goodwell’s long-term investment partner based in Lagos, Nigeria. The fund has so far garnered commitments totalling 50 million euros from foundations, family offices, and individual investors and at least 35 new portfolio businesses will gain from the fund.
Speaking on the investment fund and on building Goodwell’s successful track record, Els Boerhof, one of Goodwell’s managing partners said,
Our mission-driven investment philosophy delivers both financial and social returns by taking an extremely local approach. Our repeated success is directly connected to working closely with our portfolio companies, bringing together both regional expertise and access to a global business network.Els Boerhof, one of Goodwell’s managing partner
The uMunthu II will make investments in businesses that provide un(der)served populations with inexpensive, basic, high-quality goods and services as well as in local entrepreneurs that are aware of the needs and difficulties of their customers.
Also, the diversified investment portfolio will prioritise financial inclusion (35%), food and agriculture (25%), and mobility and logistics (15%), with a secondary focus on healthcare, education, and energy.
uMunthu II and the African startup potentials
Remember that we reported that, according to statistics from CB Insights, venture capital in Africa unexpectedly fell by 54% in the third quarter of the year. However, while other companies have become more cautious in the face of economic uncertainty. Goodwell sees the enormous untapped possibilities of the African market.
Although, many entrepreneurs have nonetheless managed to attract a sizable amount of investments during the year, despite the economic downturn in venture funding in Africa.
In a recent report of the most funded startups in Africa, fintech startups made up 36 of these startups, which is more than twice as many as the following area, resources for the environment and energy. This may have inspired uMunthu II’s decision on which startups to concentrate on.
Aside from Goodwell investments, the current status of the world economy, and the fact that most other regions’ markets are changing or stagnating, some other investments are starting to see the enormous economic potential in Africa.
However, despite the continent’s overall bright future, the majority of African startups do not currently have the opportunity to participate in funding rounds.
The goal of Goodwell’s most recent fund, uMunthu II, which has 15 years of expertise managing impact-focused investments in Africa and India, is to promote equitable growth.
The company’s 35 current portfolio firms have reached customers in 47 countries and served over 30 million families with financial services valued at over EUR 2.5 billion. They have also directly supported 35,000 employees.
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