FSD Africa Investments (FSDAi), has announced a US$ 4.5 million commitment to Funds set up by Lendable Inc in the hope of boosting the capacity of alternative financial service providers in sub-Saharan Africa and to provide credit to micro, small and medium enterprises (MSMEs) recovering from the effects of the COVID-19 pandemic.
Lendable is a UK based fintech startup doing well to provide structured finance to alternative lenders in emerging markets. They make available funds to support the lending capacity of alternative financial service providers, who in turn provide the needed capital to MSMEs including those in Africa.
Why the Fund is necessary
This committment comes at a time when MSMEs need help in fueling their recovery from the effects of the CoVID-19 pandemic especially when credit from other sources are becoming tougher to access.
FSDAi’s investment will strengthen two new funds set up by Lendable to lend to MSMEs. The first will provide capital of atleast $31 million to eight financial service providers lending to MSMEs across sub-Saharan Africa.
The second aims to provide $100 million in support to fintech companies lending to MSMEs in Africa and other emerging markets. The FSDAi’s plans an initial $4.5 million investment into the larger fund in the first quarter of 2021.
FSDAi and Lendable also expect the funds to highlight sub-Saharan Africa as a viable investment destination for global commercial investors. The funds have the potential to channel even more capital to the continent, further expanding credit markets and access to financial services.
“FSD Africa is proud to be working with Lendable.” Mark Napier, CEO of FSD Africa noted. He added that together with FSD Africa Investments they are offering a timely solution to strengthening sub-Saharan Africa’s financial markets at a time when it needs it the most.
The added liquidity that Lendable’s new fund will supply to credit providers, he explains, will amplify the impact fintech and micro lenders in Africa have already had in speeding up financial access.
In a statement released to the press recently, Daniel Goldfarb, CEO of Lendable Inc. stated that;
“We’re incredibly excited about FSD Africa’s investment and the liquidity it will enable for fintechs providing financial services during this critical time. Digital financial services have become a critical lifeline for so many Africans.”
Daniel concluded that, FSD Africa’s commitment to continuing to provide catalytic capital to the African market throughout COVID is a testament to their leadership in the sector, and are proud to solidify their partnership with their investment in Lendable’s facilities.
Anzisha Prize: Nominate A Young Entrepreneur for A Share of US$100K
The Anzisha Prize team calls for nomination to the 2021 Top 20 Anzisha Prize Fellows. This invitation to nominate the top entrepreneurial talents from all African countries is for persons between the ages of 15 and 22 who will receive financial and networking support they need to succeed.
This is a competition not awarded for great ideas or business plans but rather, one to recognize young entrepreneurs who are operating for-profit and non-profit ventures which do well to demonstrate ingenuity, scalability and have a social impact.
The Anzisha Prize team says, your nomination is a vital endorsement that recognises their great works. Annually, 20 leading youth entrepreneurs are selected to become Anzisha Prize Fellows.
The Anzisha Prize so far is the biggest award for young African entrepreneurs between 15 and 22, and over US$100,000 each year is given in prize money to these young entrepreneurs from across the continent.
What are the criteria for the Azisha prize?
- Your nominee should be between the ages of 15 and 22
- Do they run a business venture which is already delivering value to customers?
- Is your nominee involved in the strategy and operations of the venture?
- Is the business already having a social impact?
- Is the business earning a revenue, or reaching beneficiaries with the potential to realize more growth (both ‘for-profit businesses’ or ‘not-for-profit’ ventures qualify).
Alaa Moatamed of Egypt won the 2020 Anzisha grand prize and also the first Egyptian female to do so. Her business is Presto, which is an automated delivery system that is connecting vendors with their customers and suppliers.
After nominating, so what?
Your nominees for the Prize still need to submit an application because your nomination is an endorsement, a recommendation letter on behalf of the candidate.
Candidates then submit an application that gives full information about their business, enabling them to be evaluated for participation in the fellowship.
The nominee receives an email letting them know that they have been nominated, and also a reminder to apply for the prize once applications are open.
Itching to help find the next top 20 Anzisha prize winners? NOMINATE HERE.
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