Launch of $22 million fund by Goodwell Investments and Oxfam Novib to aid Entrepreneurs in East Africa

The “missing middle” of East Africa will be addressed by a new EUR20 million (US$22 million) fund that Goodwell Investments and Oxfam Novib have announced.

This fund will invest in early-stage development businesses that are having trouble obtaining financing from banks and investment funds.

Goodwell Investments is an impact investment company that focuses on inclusive growth in industries that offer underprivileged populations in Africa and India access to basic products and services as well as chances for income generating. Without regard to gender, nationality, or skin color, Oxfam Novib supports those who work for a world where everyone has equal opportunity.

The two organizations have a long history of assisting impact-driven small and medium-sized enterprises (SMEs), and they are now working together to capitalize on each other’s advantages in an initiative that marks one of the few times an NGO and an impact investing firm have worked together on an investment program for SMEs. Pepea, a EUR20 million fund, targets small- and medium-sized businesses (SMEs) with a high potential for impact.

“Oxfam Novib played a sterling role in developing the microfinance sector as a means to provide access to financial services where they were most needed. As that sector has matured beyond the realm of NGOs, we are ready to change direction toward a less-served segment of the market. We acknowledge the challenges of SMEs in the region – especially those that are women-owned – to access fine-tuned patient capital and we now want to play a role to address with that needs,” said Tamara Campero, investment manager at Oxfam Novib.

Goodwell Investments will be in charge of managing Pepea’s daily operations. With the help of its skilled local investment managers, the potential for follow-on investments from other Goodwell funds, and most importantly, a shared mission to make a positive impact, Goodwell Investments will support the success of the fund and the growth of the portfolio. The strategic direction of the fund is actively set and monitored by Oxfam Novib and Goodwell.

Goodwell Investments will be in charge of managing Pepea’s daily operations. With the help of its skilled local investment managers, the potential for follow-on investments from other Goodwell funds, and most importantly, a shared mission to make a positive impact, Goodwell Investments will support the success of the fund and the growth of the portfolio. The strategic direction of the fund is actively set and monitored by Oxfam Novib and Goodwell.

The sustainable agriculture, energy, clean transportation and logistics, and waste management sectors are the main areas of concentration for this new fund. Many of the essential items and services that make up a sizable amount of household spending in lower-income neighborhoods are produced by these industries.

Pepea is focusing on SMEs that promote the development of a greener, more equitable, and more gender inclusive “human economy” that meets societal requirements while preserving the environment in order to raise the quality and affordability of these necessities.

The fund’s emphasis on diversity and inclusion also makes it the perfect channel for advancing the gender-lens investing strategies of Oxfam Novib and Goodwell. Pepea provides a chance to take effective action for gender equality by funding women operating impact Enterprises. The investment instruments were created with a specific focus on mezzanine finance and unique venture debt structures to better meet the needs of female entrepreneurs and stakeholders.

“Goodwell is always looking for innovative ways to better serve the needs of SMEs, and we’re extremely pleased to have the opportunity to do so with one of the most professional, critical NGOs in the impact sector. There are so many synergies between our organisations, and I’m convinced that together, we can set higher standards in the impact investing space,” said Els Boerhof, managing partner at Goodwell Investments.