The Angola Sovereign Wealth Fund (FSDEA) has invested $5m in the Kimbo Fund, Angola’s debut private debt fund managed by BFA Asset Management (BFAAM). 

Armando Manuel, Chairman of the Board of Directors of FSDEA, said: "FSDEA's investment in this Venture Capital Fund is a strategic step that reinforces our commitment to supporting the growth of small and medium-sized enterprises in Angola through third-party entities.” 

“This initiative not only contributes to strengthening the national economy but also promotes financial inclusion, encouraging entrepreneurship and innovation in various areas, especially among women and young people." 

The investment will allow BFAAM’s Kimbo Fund to invest in businesses with high growth potential that generate income and are tackling key challenges in the local market aligned with the national economic diversification programme, including downstream agribusiness and logistics. 

The equity commitment is expected to also help BFAAM to raise additional capital from other investors including the country’s pension funds, high net worth individuals, insurers, and foreign institutional investors. 

With a fundamental objective to support the growth of companies led by young people and women, Kimbo Fund aims to contribute to filling value chains, promote job creation, strengthen financial inclusion, and improve access to financing. 

To achieve this, the Fund will primarily invest in the debt components of the capital structure of small to mid-market companies, while providing investors with periodic streams of income through regular payment of distribution while prioritising the preservation of invested capital on a competitive risk-adjusted return basis.

Initial investments will be around the $250k-500k mark, followed by additional capital injections of $1m to support their growth.

Kimbo Fund is structured as a Closed-Ended Collective Investment Scheme, regulated by the Angolan Capital Markets Commission and the Mauritius Financial Services Commission, with a tenor of 10 years and a $20m target size.

In addition to financial support, the Fund is also committed to providing training and capacity building for entrepreneurs, ensuring that their activities are aligned with global Sustainable Development Goals (SDGs), whilst fostering the development of Angola's private capital investment ecosystem.  

FSDEA's investment in the Kimbo Fund represents a strong commitment to supporting the growth of SMEs in Angola, which are crucial to the country’s economic development. 

This agreement not only symbolises the mutual trust between the two institutions but also highlights the vital role both play in creating a more dynamic and resilient financial environment in Angola. 

The collaboration between FSDEA and BFAAM aligns with the long-term vision of both institutions to foster a more inclusive, sustainable, and diversified financial markets in the country. 

Rui Oliveira, Chief Executive Officer & Co-CIO of BFAAM, said: "We are excited about this collaboration with FSDEA, which will have a significant positive impact on Angola's economic and social development.” 

“The Kimbo Fund is a testament to our investment thesis and long-term mission to use innovative capital solutions as a vehicle to finance and build stronger companies and produce measurable impact, as well as further cement our commitment to the growth of the region’s capital markets."