Goodwell Investments and Oxfam Novib have announced a $22 million) fund that will address the "missing middle" East Africa by investing in early-stage growth companies that are struggling to secure finance from banks and investments funds.
Goodwell Investments is an impact investment firm focused on inclusive growth in sectors providing basic goods and services and income generation opportunities to underserved communities in Africa and India.
Oxfam Novib stands behind the people who stand up for equality, fighting for a world where everyone has equal opportunities, regardless of gender, ethnicity or skin colour.
In a statement released on Monday, the two organisations noted that the fund, dubbed Pepea is aimed at helping small- and medium enterprises (SMEs) with high impact potential and will help young companies 'take off' and 'flourish' while contributing to a greener, fairer, and more inclusive society.
"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 manage Pepea's day-to-day operations, supporting the success of the fund and development of the portfolio with its experienced local investment managers, the potential for follow-on investments from other Goodwell funds, and most importantly, a shared mission to create positive impact.
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Oxfam Novib and Goodwell are both actively involved in setting and monitoring the fund's strategic course.
This new fund focuses primarily on the sustainable agriculture, energy, clean mobility and logistics, and waste management sectors which produce many of the basic goods and services that represent a huge proportion of household spending for lower-income communities.
According to the two organisations, in order to improve the quality and affordability of these essentials, Pepea is targeting SMEs that drive the growth of a greener, fairer, and more gender inclusive 'human economy' that serves the needs of society while respecting the planet.
The fund's focus on inclusion also makes it an ideal conduit to expand both Oxfam Novib and Goodwell's approach to gender-lens investing.
"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.
