Prosper Africa Partners with African Asset Fund Managers to Mobilize $200 Million for Innovation and Entrepreneurship
Prosper Africa has announced partnerships with four African asset fund managers under the Prosper Africa Catalytic Investment Facility, with plans to mobilize over $200 million in private capital to support African innovation and entrepreneurship. The facility provides financing to African asset managers and financial vehicles that focus on growth-oriented businesses.
This approach aims to boost investment in entrepreneurs and small businesses addressing global challenges like climate change and gender inequality. The facility was introduced at President Biden’s U.S.-Africa Leaders Summit in December 2022, with an initial investment of $6 million from Prosper Africa. This collaboration with the U.S. Agency for International Development (USAID) seeks to attract private capital for early-stage African companies and entrepreneurs, fostering job creation and business growth across the continent.
The four new partnerships and funds include:
- Enko Africa Private Equity Fund: A private equity fund targeting investments in mid-market African companies post-Covid pandemic.
- EG Capital: A female-led fund, EG-Economic Empowerment Fund L.P., investing in medium-sized businesses in East Africa and Zambia within sectors like Food, Climate, Health, and Education.
- Kuramo Capital: Creating an accelerator program for first-time female fund managers and building a fund of funds structure to attract private investment.
- Catalyst Fund: A pre-seed impact fund and accelerator focusing on high-impact tech startups that improve the resilience of climate-vulnerable populations in Africa.
In total, 10 African asset management funds have been announced under the U.S.-Africa Leaders Summit initiative, including ThirdWay Partners, Fund for Africa’s Future, Altree Capital, Endeavor South Africa, and Okavango Capital.
Opinion:
This initiative by Prosper Africa and its partnerships with African asset fund managers demonstrate a concerted effort to boost entrepreneurship and innovation in Africa. By mobilizing significant private capital, these collaborations aim to address pressing challenges like climate change while promoting gender equality and economic growth. The partnerships signal the recognition of the potential of African startups and businesses to drive positive change on the continent. The combined efforts of Prosper Africa and USAID could play a pivotal role in shaping the future of African economies and fostering sustainable development.