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Alitheia IDF (AIF), a women-focused non-public fairness fund in Africa has raised $100 million to put money into gender-diverse companies throughout the continent.
The fund is seeking to bridge the financing hole for women-led or owned companies in Africa – the place ladies startup founders are much less prone to obtain funding regardless of their rising enterprise.
Girls-only founders have acquired lower than 1% of the almost $5 billion that has been raised by startups throughout Africa to this point this 12 months.
“Globally, ladies have super buying energy as customers and controllers of family economics. In the identical vein, ladies entrepreneurs have a major presence in Africa’s SME sector with African ladies making up 58% of the continent’s self-employed inhabitants. Nevertheless, regardless of this financial energy and presence, they’re underserved as customers and producers,” mentioned Alitheia’s principal associate in Nigeria, Tokunboh Ishmael.
Ishmael provides that the exclusion of ladies has had a big impact on Africa’s financial development because the potential of greater than half of its inhabitants stays untapped because of structural and systemic points.
“We’re proactively working in direction of filling this hole with a transparent mandate to help women-led companies throughout the continent whereas elevating consciousness for gender sensible funding as a path in direction of inclusive financial development,” she mentioned.
Alitheia invests in development stage firms throughout Nigeria, South Africa, Ghana, Zimbabwe, Lesotho and Zambia, representing a small fraction of the 55 nations in Africa.
By investing in ladies, the fund hopes to unlock the potential of women-led companies in Africa, and, finally, the financial transformation of their nations.
The fund’s buyers embrace the African Growth Financial institution, Financial institution of Trade Nigeria, FinDev Canada, Dutch Good Development Fund and the European Funding Financial institution. European Funding Financial institution (EIB) joined the spherical because the closing investor, committing $24.6 million.
“Girls-owned companies nonetheless wrestle to boost funding, though they’ve confirmed their efficiency. I’m very happy to help a real ‘by ladies for girls’ 2X Flagship Fund, which invests in firms creating job alternatives whereas enhancing range in sub-Saharan Africa’s financial system,” mentioned EIB vice-president, Thomas Östros.
The EIB’s funding in Alitheia IDF is a part of its SheInvest initiative which seeks to mobilize about $2.26b of funding to spice up gender equality and ladies financial empowerment throughout Africa.
The brand new $100m funding for Alitheia comes after it raised $75 million in 2019, which it’s utilizing to finance women-led companies throughout the goal nations. Among the many enterprises supported by the fund are Ghana’s Jetstream Africa, South Africa’s AV Mild Metal and Nigeria’s ReelFruit Ltd, SKLD (previously SchoolKits) and Chika’s Meals.
Jetstream Africa, which raised $3 million in July this 12 months, makes it potential for companies throughout Africa to handle their cross-border provide chains by the aggregation of personal sector logistics suppliers at African ports and borders.
AV Mild Metal manufactures and provides mild metal constructions whereas Chika’s Meals, and ReelFruit, which raised $3 million in collection A funding two months in the past, are each snack producers. SKLD provides merchandise together with instructional, hygiene and workplace provides.
“The historic lack of ability to appropriately seize the financial potential of African ladies has affected Africa’s improvement. Alitheia IDF is on a mission to fill this hole by utilizing a gender-smart method, and monetary capital to empower ladies as customers and producers,” mentioned Alitheia’s principal associate in South Africa, Polo Leteka.
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