Goodwell Investments has launched uMunthu II, a €150 million institutional investment fund to finance innovative, scalable, small and medium-sized businesses that improve the access and affordability of essential goods and services for un(der)served consumers in Africa.
In recent years, investors are waking up to Africa’s enormous economic potential as markets shift and stagnate in most other geographies. Across the continent, an increasingly favourable 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 USD 3.5 billion – a 133% increase compared to 2021.
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. To date, the fund has received €50 million in commitments from private investors, family offices and foundations. The capital will be channelled into at least 35 new portfolio companies.
uMunthu II is expected to continue the consistently 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 EUR 2.5 billion worth of financial services to over 30 million households, directly created 35,000 jobs and reach consumers in 47 countries.
Els Boerhof, a Partner at Goodwell Investment 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.”