africa DFI Finance impact investment Mauritius

Mauritius impact investment platform for Africa launched

Mauritius Impact Finance Gateway to Africa (MIFGA) is a Mauritius-based joint initiative by Innpact and AXIS to support the creation and the management of impact finance vehicles investing in Africa

Axis and Innpact have launched the first impact investing platform in Mauritius, the Mauritius Impact Finance Gateway to Africa (MIFGA). This innovative structure enables fund promoters to set-up and manage impact finance vehicles in an efficient and cost-effective manner while benefiting from the support of leading service providers in the industry.

AXIS is a leading service provider in Mauritius offering a full spectrum of corporate, fiduciary, tax & accounting and fund administration services to a diversified client base, including Development Finance Institutions, Angel Investors, Institutional Investors, Family Offices, GPs and Investment Managers.

MIFGA has been designed as a turnkey solution addressing the key challenges typically faced by new impact funds: complexity of blended finance structures, time to market and availability of resources, especially during the ramp-up phase.

The platform leverages on the 10-year experience of Innpact in the establishment of 20+ structured vehicles for public, private and non-profit organizations, as well as in the delivery of portfolio and risk management services to major players in the impact finance industry.

Through Axis and its sister company BLC Robert, fund promoters benefit from state-of-the-art domiciliation, fund administration, accounting and legal services in Mauritius with a strong direct expertise of African jurisdictions. BLC Robert is a member of ALN, a pan African alliance of top tier law firms.

MIFGA combines the advantages of a lean and flexible operating model with the robustness and track record of its members in supporting impact funds.

Drawing on the expertise of Innpact, Axis, BLC Robert, Standard Chartered Bank and the Mauritius Commercial Bank, MIFGA offers a comprehensive fund management solution to impact investment managers willing to focus on their core area of expertise: deal management.

Impact investments in Africa has been steadily rising with keen interests in markets like Kenya and Rwanda leading. Between 2005 and 2015, almost half of all impact capital disbursed in East Africa had found its way into the Kenyan market, representing more than US$650 million of private impact investment capital and more than US$3.6 billion of DFI capital.

The number of investment funds are increasing, however the funding is going to a small number of enterprises. More investment funds are entering the region; however they are investing in same enterprises, with the majorityof funding being allocated to the larger expat founded social enterprises. For instance, just five enterprises – M-Kopa, (off-grid electricity, PAYG company), Angaza, (sales and payment management provider) Tala (a consumer lending app), Off Grid Electric (clean energy provider) and Branch (a lending app) – received over 70% of disclosed investments in the region between the period of 2015 and 2017.

Source: The Exchange

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