Prosper Africa is pleased to announce four new partnerships with African asset fund managers under the Prosper Africa Catalytic Investment Facility that will mobilize over $200 million in private capital to fuel African innovation and entrepreneurship.
The Prosper Africa Catalytic Investment Facility provides financing to African asset managers and financial vehicles that have a pipeline of growth-oriented businesses. This portfolio approach deepens the reach and catalyzes greater investment in entrepreneurs and small businesses advancing solutions to global challenges, including climate change and gender inequality.
The investment facility was first announced at President Biden’s U.S.-Africa Leaders Summit in December 2022. Prosper Africa made a catalytic investment of $6 million in the investment fund as part of a package of $15.7 billion in two-way trade and investment commitments made at the Summit.
In partnership with the U.S. Agency for International Development (USAID), the co-investment fund also aims to mobilize private capital for early-stage African companies and entrepreneurs to accelerate jobs and business growth across the continent.
The new funds are:
- Enko Africa Private Equity Fund: Enko Africa Private Equity Fund is a private equity fund that will invest in mid-market African companies in a post-Covid pandemic environment in Africa.
- EG Capital: The EG-Economic Empowerment Fund L.P., managed by EG Capital, is a female-led fund deploying capital to medium sized businesses in high growth sectors of Food, Climate, Health and Education in East Africa and Zambia. The Fund is targeting US$100 million, and with its next closing for October 2023.
- Kuramo Capital: Kuramo Capital set up an accelerator program for first-time female fund managers and is building a robust fund structure that will attract additional private investment as a fund of funds to hit a target close of US$100million by 2023.
- Catalyst Fund: Catalyst Fund is a pre-seed impact fund and accelerator that will catalyze capital into high-impact tech startups that seek to improve the resilience of climate-vulnerable populations across Africa.
To date, 10 African asset management funds have been announced since the U.S.-Africa Leaders Summit. The funds announced at the Summit were ThirdWay Partners, Fund for Africa’s Future, Altree Capital, Endeavor South Africa, and Okavango Capital.