Responsible Investment Management and Advisory Services

Launch First-time Investment Fund Focused on SME in Zimbabwe

The DGGFs Seed Capital and Business Development (SCBD) facility supports the launch of Vakayi, a first-time investment fund focused on small and medium businesses in Zimbabwe. Vakayi targets a unique market (deal size around $ 1 million), in a country that is generally outside the radar of most investors.

The SCBD facility will support the launch phase of Vakayi, preceding the fund’s first closing, by providing liquidity support and initial investment capital. The goal is to propel the fund’s progress by building a strong pipeline and fine-tuning the investment process, with a complete team in place.

Vakayi will invest in local entrepreneurs providing essential services, such as housing, education, clean energy and healthcare, for the growing Zimbabwean middle class. Despite the dollarization in 2009 and the improved credit availability, small businesses in Zimbabwe continue to face challenges accessing capital at reasonable cost and tenure.

Vakayi will provide growth capital, mostly self-liquidating instruments, to local SMEs. Equity will be used where realistic exit options are perceived. After the pilot phase, a USD 25m fund will target market-rate returns and simultaneously the creation of high-quality jobs in impact sectors.