A premier, US $200 million impact investing initiative designed to support substantial long-term economic growth. Apply below.
When is Application Deadline:
Not specified
Tell Me About Award:
With a pledged $200 million (USD), the Mastercard Foundation Africa Growth Fund (MFAGF) is a visionary Fund of Funds that works through African Investment Vehicles to promote early-stage, growth-oriented SMEs across the continent. The Mastercard Foundation Africa Growth Fund seeks to provide young people, especially young women, with access to respectable and worthwhile employment. The Fund-of-Funds acts as a catalyst by enhancing and reducing the risk associated with African Investment Vehicles that are dedicated to advancing gender equity in entrepreneurship.
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The MFAGF will offer a business development facility for the portfolio companies of investment vehicles in addition to capital for fund managers. The Fund-of-Funds initiative will apply gender-lens investing (GLI) principles to further the Mastercard Foundation’s Young Africa Works strategy, which seeks to provide access to 30 million young people in Africa, especially young women, to meaningful and respectable employment by 2030. The Fund-of-Funds has so far secured the support of two investment vehicles, one in East Africa and one in West Africa, both of which foster entrepreneurship. For the MFAGF, Investisseurs et Partenaires (I&P) serves as the fund advisor.
TWO-PART SERIES BY THE MENNONITE ECONOMIC DEVELOPMENT ASSOCIATES (MEDA) AND INVESTISSEURS ET PARTENAIRES (I&P) ON THE MASTERCARD FOUNDATION AFRICA GROWTH FUND (MFAGF)
Hugues Vincent-Genod welcomes everyone to the discussion by introducing Investisseurs et Partenaires, a $400 million AUM impact fund manager engaged in 10 markets with a focus on Africa. Then, he speaks about the historic $200 million Mastercard Foundation initiative (Mastercard Foundation Africa Growth Fund- MFAGF) to support African investment vehicles in conjunction with a group of partners, including Mennonite Economic Development Associates (MEDA), Entrepreneurial Solutions Partners (ESP), Genesis Analytics, the Criterion Institute, and Africa Communications Media Group.
Eligibility
The MFAGF fund, which is run by female African fund managers and supports various fund structures and instruments, will play a transformative role for the first time. In order to overcome some of the obstacles, such as local currency risk, the fund also aims to make it easier to raise large amounts of capital from African investors.
More women-led funds, which presently make up the majority of the pipeline, and promoting more patient capital into different investment vehicles are the two primary pillars the MFAGF strives to support.
Many of the frameworks used were developed by The Criterion Institute, and it will support investment vehicles in their efforts to apply and uphold a strong gender perspective in all investment decisions. In addition to providing funding, the effort will also provide technical and qualitative support, including guidance on establishing HR rules and best practices for corporate governance within the funds and its ensuing portfolio firms.
The Africa Growth Fund DOES NOT invest directly in small and medium-sized enterprises. Instead, it provides capital to selected Investment Vehicles, which then distribute funding to businesses that meet their criteria. If you MANAGE A FUND and want to get involved, we invite you to learn more about us and submit an application.
Type:
Entrepreneurship
Who can Apply?
The Fund will consider Investment Vehicles that meet the following criteria:
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- The majority of the investment team is based in sub-Saharan Africa, including at least one partner or C-suite member is based on the continent and who is part of the decision-making process.
- Invest in sub-Saharan SMEs with a ticket size of between US $50,000 to US $4 million.
- Invest in a diversity of sectors including manufacturing, agribusiness, education, health, technology, and tourism and hospitality.
- Include an impact focus in the investment strategy defined as solving a key gap in the investment ecosystem, which enables the vehicle to achieve additional job creation and generate additional income opportunities in the value chains of its portfolio companies, including for women and young people and especially young women.
- Demonstrate financial viability by attracting other forms of capital, including private capital.
Which Countries are Eligible?
The fund is focused on seven sub-Saharan Africa countries: Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Senegal, and Uganda.
How Many Awards?
Not specified
What is the Benefit of Award?
The Mastercard Foundation Africa Growth Fund is a US $200 million fund of funds — that works through African Investment Vehicles (including venture capital funds, SME debt funds, permanent capital vehicles etc.) to support growth-oriented SMEs on the continent with the goal of enabling dignified and fulfilling work for young people, particularly young women.
How to Apply:
Visit Award Webpage for Details
