Uncap launches Ksh.4.3 billion fund for small businesses in Africa

Unconventional Capital (Uncap) has launched a €30 million (approximately Ksh.4.3 billion) fund to provide revenue to small and medium sized businesses across Africa.

Deemed as a revolutionary step, the Fund aims to unlock new growth opportunities for businesses to tap and thrive in their respective sectors.

To achieve this, Uncap will collaborate with key partners, including SAIS, an ag-tech initiative funded by the German Federal Ministry for Economic Cooperation & Development (BMZ) as well as O-Farms, a circular agriculture program run by Bopinc and funded by the Ikea Foundation. 

The organisation will also be funded by institutions such as the Bill & Melinda Gates Foundation and the Bayer Foundation, highlighting the growing confidence in Uncap on a global scale.

Uncap’s Investment Principal Esther Ndeti and CEO Franziska Reh will coordinate the Fund's operations owing to their extensive experience and strategic vision to guide the company's efforts in providing impactful financial-based solutions.

According to Ms. Ndeti, the Fund was created to address the lack of effective funding opportunities for small businesses to thrive. 

"SMEs account for about 90% of African businesses, yet they face many challenges in raising capital. The inefficiency of African capital markets in effectively supporting SMEs, coupled with limited visibility to a broad investor base, continues to hinder access to essential funding for small and medium-sized enterprises across the continent," she said.

"We hope this Fund will address capital gaps for early-stage SMEs as they scale, deepening our impact. In the end, we want to not only support more businesses but also set new standards in the industry for innovation and inclusion."