Uncap ​Launches €30 Million Fund to Support African SMEs

Uncap, a venture capital company operating between Germany and Kenya, has unveiled the launch of a €30 million fund to support African Small ⁢and ‌Medium Enterprises (SMEs) in the start-up phase.

Supporting High-Potential ⁤Companies in Sub-Saharan Africa

The venture capital company Uncap, based in Germany and Kenya, announced that it is creating a €30 million fund to support small and medium-sized businesses in Africa. ⁤This new ‍funding vehicle will target high potential companies in Sub-Saharan Africa, before expanding across ⁤the‌ continent. Initially, this fund will focus on companies established in Kenya, Uganda, Rwanda, and ​Nigeria, before gradually expanding across the continent.

Eligibility Criteria‌ and Funding Details

Target companies must have ‌at least two years of existence, with a turnover of at least $89,000 over the‍ last 12 months. The amount of funding awarded will ⁣vary between $22,000 and $112,000, ‌in the form of non-dilutive capital. This ⁤type of funding will allow SMEs to grow without losing control of their businesses.

Focus on High Impact Sectors

The fund will focus on high impact sectors, such as agriculture,⁢ trade, and financial inclusion, areas considered essential for the ‌continent’s⁢ sustainable growth. ​Esther Ndeti, investment director at Uncap, is co-leading this project with Franziska Reh.

Addressing ‍the Financing Gap for SMEs ‌in Africa

Esther Ndeti⁤ pointed out the obstacles SMEs face in raising capital in Africa. “The⁣ ineffectiveness of African financial markets in supporting SMEs, ⁢combined with limited visibility among⁤ a broad investor base, continues to hinder access to finance for these SMEs on the‌ continent,” she said. Uncap, founded in 2019 and operational since 2021, aims to increase access to finance for small​ and medium-sized businesses‍ in Africa.

Supporting the African ‌Economy

The financing of small and medium-sized businesses remains a central issue for the continent’s economic development. By investing in these companies, Uncap hopes to help close the financial gap they face, while promoting job creation and innovation in ‍key sectors. With Unconventional⁣ Capital, the venture capital firm hopes to not ‌only support ⁢African entrepreneurs but also‍ encourage⁢ an environment conducive to the growth and prosperity of local economies.