IFC to invest Sh562m in SMEs and startups in East Africa

By John Oyuke

International Finance Corporation (IFC), a member of the World Bank Group, will invest Sh562.5 million in East Africa.

The institution will give the money to Fanisi Venture Capital Fund, which would focus on startups and small and medium enterprises in Kenya, Rwanda, Uganda and Tanzania.

Founded last year by the Norwegian Investment Fund for Developing Countries (Norfund) and the Nairobi-based Amani Capital Limited, the Fund focuses on transforming small businesses into key actors. The fund plans to make investments of between $500,000 and $3 million in a variety of sectors. "It will set up a business services support facility to help pipeline companies overcome technical and governance limitations, pre- and post-investment," said a statement released by the institution.

Training support

Head of the fund’s investment team and Chief Executive of Fanisi Capital, the fund’s local investment advisor, Ayisi Makatiani lauded IFC’s support to the Fanisi team.

The statement said IFC’s Gender Programme will help the business services facility, while Rwanda Enterprise Development Programme will provide training support to the fund’s portfolio companies.