A mixed group of investors, including family offices, private investors, and institutional investors, have committed €57m to the first close of uMunthu II fund.

Managed by Goodwell Investments and its long-standing partner Alitheia Capital, the fund is expected to reach its final close within two years, with a minimum target of €150m.

Els Boerhof, Managing Partner of Goodwell, said: “The African market provides a huge opportunity for impact and economic growth, especially during turbulent economic times, as we learned once again during recent crises. African economies and specifically inclusive businesses that provide essential products are highly resilient and continue to grow, contrary to global developments. Because crisis or not, unmet demand for basic goods and services on the continent will rise for an ever-growing group of underserved users.”  

The fund will focus on closing this gap in Africa by investing in local entrepreneurs and providing local solutions to local issues.

The investments will be managed by women-led investment teams based in the same regions as the entrepreneurs they work with.  

Tokunboh Ishmael, Co-founder and Managing Director of Alitheia Capital, said: “uMunthu II will tap into the huge potential of inclusive businesses that provide high-quality, reasonably priced goods and services for underserved low-income groups, such as food, housing, transportation, and healthcare. Improving access to these essentials directly links to increasing participation in social and economic networks and improving livelihoods.” 

“Funding from uMunthu II will enable these innovative entrepreneurs to build businesses that reach millions of underserved end-users while delivering positive social and environmental impact and market-rate financial returns,” he added. 

Despite growth opportunities, African entrepreneurs need more funding to reach their potential.

Venture capitalists injected a record $6.5bn into the 54 African countries in 2022.

Yet that pales in comparison to the $200bn raised in the United States alone that same year.

uMunthu II is specifically investing in early and growth-stage SMEs, and actively seeking out women-led businesses because currently only 15% of venture capital funding is going to companies founded and or led by women. 

A strong uMunthu II portfolio is taking shape, as one of the anchoring feeder funds has already invested in nine companies, including Copia, Chicoa Fish Farm, Sendy, Good Nature Agro, Instill Education and Origen Fresh, which are indicative of the overall strategy to invest in high-impact sectors. 

In addition to growing the uMunthu II portfolio, Goodwell aims to welcome new family offices and institutional investors to its network who are looking for growth opportunities that match their impact and financial objectives and who understand the huge potential for creating social and environmental impact on the African continent while delivering competitive financial returns.