Investment: Fanisi Venture Capital Fund

Fanisi Venture Capital Fund
Fanisi is a private equity fund based in Nairobi, Kenya.  It seeks to invest in small and medium enterprises (SMEs) throughout East Africa, which are largely ignored by private commercial capital and yet have the greatest potential for high growth and job creation in the region.  The East African Development Bank’s 2007 analysis of the East African market revealed that 46% of firms surveyed could not meet financing needs for internal resources.  Fanisi launched in early 2010 with $45 million under management to target this “missing middle” market. It seeks to make investments of $500, 000 - $3 million in companies with substantial growth potential. Other major investors include International Finance Corporation (IFC) and Norfund, as well as Finnfund and Proparco.

Why we invested
East Africa’s SME sector plays a key role in job creation and urgently needs investment.  Fanisi has an impressive management team drawn almost exclusively from the region and will focus the Fund’s investments in the agri-business and information and communication technologies (ICT) sectors.  The agri-business related pipeline will be comprised of companies that improve agricultural productivity, add value through processing and enhanced inputs, and create export markets for local produce.  The effect of these activities is to create jobs and improve the country’s food security and balance of payments.  The ICT companies under consideration will be largely focused on improving access to financial services for the poor, facilitating money transfers, and making the financial sector more efficient. The Fund presents an attractive platform for social investors seeking to support independent entrepreneurship in Africa.

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