African Alliance Asset Management, has joined forces with Tshikululu Social Investments, a social investment manager and advisor, to offer global investors Thrive Africa, a unique Impact Investment offering for Africa.

Nicholas Piquito, CEO, African Alliance Asset Management, said: “Thrive Africa is a single-point solution for impact investment across sub-Saharan Africa and allows investors access to a wide range of economically attractive impact with real return in a low-yield global environment.”

Piquito told Africa Global Funds that the Thrive Africa Fund is the first offering to investors via the Thrive Africa Platform.

“This is an expert fund targeting sophisticated institutional and private investors. Target investors include pension funds, family offices, endowments, wealth managers and HNWI,” he said.

African Alliance and Tshikululu are now in the process of fundraising, as well as engaging with various impact businesses.

“Initial seed capital target is $25m, with $50m by year-end,” Piquito said.

The partnership aims to make its first investments in the coming months.

“Companies with a stable operational and financial track record contributing in a measurable way to the United Nations’ sustainable development goals, with a focus on Clean Energy, Financial Inclusion and Infrastructure. Typical ticket size at initiation would be $2-$5m,” said Piquito.

“The Southern and Eastern Africa regions are particularly attractive at the moment and will be the primary focus of the fund at initiation,” he added.

By bringing together decades of experience in Financial and Social Impact expertise, African Alliance and Tshikululu are aiming to deliver sound financial returns and measurable impact for international investors.

Impact Investments are defined as investments that are made to generate a measurable social and environmental impact alongside financial returns.

Given Africa’s unique and urgent challenges, Impact Investment provides a practical and promising approach to providing much needed resources to assist with achieving the Sustainable Development Goals (SDGs) in Africa, including those focused on employment, infrastructure, energy, education, clean water, agriculture and others.

This unique partnership – between two African companies founded by Africans – draws on the strengths and experience of both partners, working hand-in-hand on every deal and investment.

Tshikululu will be responsible for social impact due diligence on all prospective deals, and impact measurement and management on all approved investments.

African Alliance will complete financial due diligence on all companies, and track financial performance as well.

“The first fund will provide loan finance to impact businesses across the continent working on financial inclusion, infrastructure and clean energy,” said Tracey Henry, Tshikululu’s CEO.

“By working with these companies, Thrive Africa will provide a platform for investors to be part of building a greener, more prosperous and inclusive Africa.”

According to Piquito, Thrive Africa represents the uniquely structured amalgamation of significant on-the-ground investment capability with a long-term track record; independent Africa-focussed impact assessment expertise; and extensive direct origination capability – the three critical elements of successful impact investing in frontier and emerging markets.

“The partnership/joint venture of Tshikululu and African Alliance is another key differentiator. Instead of traditional asset managers or traditional social impact experts trying to build the capability for investing or impact measurement, we are combining the long-term and deep expertise of two African companies to ensure that the Fund is able to invest in the right companies to drive maximum financial and social returns.”