Goodwell Investments launches fund to support high growth African SMEs

Goodwell VGoodwell Investments has announced the launch of Goodwell V that aims to channel capital from private investors, family offices and foundations to fast-growing, scalable small and medium-sized companies 

Goodwell V is the cornerstone feeder for a new institutional fund that the company plans to launch in the second half of this year. The firm’s local teams in Nigeria, Kenya and South Africa have made more than 20 investments across Africa over the last five years, successfully balancing substantial social impact with delivering a market rate of return to investors.  

Goodwell V will build a new portfolio of companies across various sectors in Africa: at least a third will be invested in financial inclusion, a quarter in agriculture and the remainder in mobility and other impact sectors such as education and healthcare. The fund will also allocate follow-on funding to existing portfolio companies, such as Copia, MFS Africa, Good Nature Agro, Tomato Jos and Nomanini.  

Over the next decade, Africa is expected to continue to be home to some of the fastest growing economies in the world. A growing youth population, together with rapid urbanization and improving business environments across the continent, are contributing to an increase in purchasing power and rising household consumption predicted to reach US$2.5 trillion by 2030. 

While investment in African startups grew from US$400mn in 2015 to US$2bn in 2019, just 2% of global private equity investment reaches the continent. The capital committed to early and growth-stage businesses in Africa is doubling every year but still merely scratches the surface of the growth potential.

On the launch, Goodwell director of communications Nico Blaauw said, “Our portfolio companies are showing average revenue growth of over 50% per annum. They have been able to withstand the perils of the pandemic by doing what they do best: providing access to essential products and services like food, transport, healthcare, and financial services. We are excited to continue the journey.”   

Tayo Oviosu, founder and CEO of Goodwell Investments’ portfolio company, Paga noted, “In 2020 we passed the mark for 17 million users, whom we serve through a network of over 35,000 agents. We see the opportunity to connect every adult in Nigeria to financial services, and we are delighted Goodwell see things the same way.” 

 

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