Goodwell Investments has launched uMunthu II, aiming to raise €150m to finance innovative, scalable, small and medium-sized businesses that improve the access and affordability of basic goods and services for un(der)served consumers in Africa.
To date, the fund has received €50m in commitments from private investors, family offices and foundations.
The capital will be channeled into at least 35 new portfolio companies.
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Despite the positive outlook for the continent as a whole, Africa’s recent prosperity has not translated into better living standards for the majority of its citizens.
uMunthu II will invest in companies that deliver affordable basic high-quality goods and services to un(der)served populations.
The diversified investment portfolio will focus on financial inclusion (35%), food and agriculture (25%), and mobility and logistics (15%), with a secondary focus on healthcare, education and energy.
The fund will be co-managed by Alithea Capital, Goodwell’s long-term investment partner based in Lagos, Nigeria.
Goodwell said it recognizes the immense untapped opportunity of the African market, and is expanding their commitment to ignite the growth of inclusive businesses in the region.
In recent years, as markets shift and stagnate in most other geographies, investors are waking up to Africa’s huge economic potential.
Across the continent, an increasingly favorable political environment, a young, highly motivated workforce and significant infrastructure improvements are converging to create an atmosphere of exciting possibilities.
In the first half of 2022, venture capital investments in Africa reached $3.5bn – a 133% increase compared to 2021.
This new wave of African development is being spearheaded by local entrepreneurs with firsthand knowledge of their customers’ needs and challenges.
Els Boerhof, Goodwell’s Managing Partner, 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.”
Goodwell Investments has 15 years’ experience leading impact-focused investments in Africa and India.
uMunthu II is expected to continue the consistent excellent results of its predecessor funds which combined significant social impact with double digit internal rates of return, including 10 exits.
To date, the company’s 35 existing portfolio companies have provided over €2.5bn worth of financial services to over 30 million households, directly created 35,000 jobs and reach consumers in 47 countries.