Goodwell Investments and Alitheia Capital have embarked on a groundbreaking collaboration, aiming to propel inclusive growth in Africa. Joining forces with a diverse group of investors, these pioneering impact investment firms are set to reshape the financial landscape of the continent, harnessing untapped potential in the face of global economic challenges.
The first close of the revolutionary uMunthu II fund has garnered remarkable support, with a passionate commitment of EUR 57 million ($60.8M). This initial success injects renewed vigor into the visions of Goodwell and Alitheia, as they strive towards their ambitious minimum target of EUR 150 million within the next two years.
The decision to channel investments into Africa stems from a shared conviction in the region’s unparalleled growth prospects. Boasting a youthful population and a rapidly expanding digital infrastructure, African markets provide fertile ground for innovative business models to flourish, enabling them to reach a burgeoning consumer base endowed with increased purchasing power.
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Nevertheless, amid progress, a sobering reality persists: numerous households still lack access to affordable basic goods and services. However, within this paradox lies an opportunity, for this underserved demographic possesses significant buying power. The African market, therefore, holds immense potential, not only for economic growth but also for profound social change, even amidst global crises. Inclusive businesses providing essential products exhibit remarkable resilience, defying global trends, and catering to an ever-growing group of underserved users in need of basic necessities.
Harnessing their collective expertise acquired over two decades in impact investing, Goodwell Investments and Alitheia Capital are uniquely positioned to bridge this gap. By empowering local entrepreneurs and nurturing homegrown solutions, these visionary firms seek to drive change at the grassroots level. Under the leadership of women-led investment teams, investments will be strategically managed within the regions where entrepreneurs are working tirelessly to effect transformation.
Enter uMunthu II, an emblem of hope for underserved low-income groups yearning for access to reasonably priced essentials. From food and housing to transportation and healthcare, inclusive businesses possess the power to reshape lives. The substantial funding of uMunthu II will embolden innovative entrepreneurs, enabling them to build transformative enterprises capable of reaching millions of underserved end-users. This groundbreaking initiative seamlessly merges positive social and environmental impact with financial success, defying conventional paradigms and paving the way for a new breed of entrepreneurs committed to driving societal change.
However, despite the immense growth opportunities, African entrepreneurs continue to face a glaring funding gap. While venture capitalists injected a record-breaking USD 6.5 billion into the 54 African countries, this starkly contrasts with the staggering USD 200 billion raised in the United States alone during the same period. The plight of African entrepreneurs, particularly women, calls for increased support and investment. uMunthu II stands resolute, actively seeking out and investing in early and growth-stage SMEs, with a specific emphasis on women-led businesses, who currently receive a meager fraction of venture capital funding.
The uMunthu II portfolio already paints a vivid picture of transformation, with nine visionary companies leading the charge. From Copia and Chicoa Fish Farm to Sendy, Good Nature Agro, Instill Education, and Origen Fresh, these trailblazers exemplify the fund’s unwavering commitment to high-impact sectors, setting the stage for a future where innovation and progress intersect harmoniously.
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However, Goodwell’s aspirations transcend the confines of uMunthu II. Aiming to expand its network and attract like-minded family offices and institutional investors, the firm seeks to cultivate a vibrant community driven by shared objectives. For those with an astute eye for growth opportunities that seamlessly integrate financial returns with societal impact, Africa stands as the ultimate frontier, brimming with potential waiting to be harnessed.
Goodwell Investments and Alitheia Capital invite new family offices and institutional investors to join their network, providing an avenue for growth opportunities that align with both impact and financial objectives. The firms understand the immense potential for creating social and environmental impact on the African continent while delivering competitive financial returns.
As the journey to finance inclusive growth in Africa gains momentum, Goodwell Investments and Alitheia Capital are poised to reshape the narrative of impact investing. With a focus on closing the gap in access to basic goods and services, these visionary firms are committed to investing in local entrepreneurs and championing local solutions to address pressing societal issues.
The uMunthu II fund is not just a financial instrument; it represents a beacon of hope for underserved communities. By nurturing and empowering entrepreneurs, uMunthu II seeks to create a ripple effect that will lead to improved livelihoods, increased participation in social and economic networks, and a brighter future for all.
Africa, with its rich potential and resilient economies, stands as a testament to the power of inclusive businesses. Goodwell Investments and Alitheia Capital, united in their purpose, are ready to embark on this transformative journey, fostering a new era of inclusive growth in Africa.
For more information about Goodwell Investments and Alitheia Capital, please visit their respective websites at www.goodwell.nl and www.alitheia.com.
uMunthu II fund uMunthu II fund
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard