Impact Africa Capital Partners was founded to make positive health, social, economic or enviromental impact in East Africa through for-profit investments in in debt, private equity and other private investment vehicles.
Our venture arm was founded to provide seed funding for profit-driven private equity investments into East African companies that have a buiness model that confers a positive health, social, economic or environmental impact.
We additionally provide advisory services to help connect East African businesses and investors.
Impact Africa Capital Partners covers a geographical region that includes Uganda, Kenya, Rwanda and Tanzania
Microfinance is generally defined as a type of banking service that is provided to low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance.
There has been significant growth in microfinance offerings in East Africa over the past five years. The rapid advancement of financial sector development in East Africa is a testimony to the important role microfinance continues to play in emerging economies. Branchless banking and mobile money have allowed rural populations to begin to gain access to financial systems, and have expanded the market potential of microfinance. While this has led to the breadth and scope of microfinance organizations has increasing dramatically, there is continued need for funding sources, particularly in rural areas. The large landmass and remoteness of many populations, the high costs of services, financial illiteracy, and the unsuitability of financial products for agriculture continue to be restrictive to the reach of microfinance.
Venture Capital Markets
There is a high need for profit-driven private equity investments into companies in East Africa, and many young companies have a buiness model that confers a positive health, social, economic or environmental impact to the region.
BMI projects that real GDP growth in 2016-2017 will be 5.9%, 6.0%, 5.0% and 7.0% in Kenya, Tanzania, Uganda and Rwanda respectively, significantly exceeding almost every other region of the world. While this bodes well for equity investments in the region, investors are keenly following the progress of the major infrastructure projects, which have historically been the main drag on the economy. Access to seed and early-stage equity capital is a key gap in the entrepreneurship ecosystem and demand for equity financing from high-growth small and medium sized enterprises is strong.