Connect with us

News

Lendable: FSD Africa Invests $4.5M into Funds Helping MSMEs Recover from Impact of COVID-19

lendable

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.

lendable
The Fund created by Lendable to help cushion MSMEs during the COVID-19 pandemic

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.

SEE ALSO |  Tunisia Ranked 1st in Africa in 2018 Global Entrepreneurship Index

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.

SEE ALSO |  Tonaton to Introduce Changes to BUY NOW Service for User Experience and Protection

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

two × one =

News

9 Startups Accepted into the First Next Health Accelerator with $15K Seed Funding

Next Health Accelerator
image courtesy: Valorigo

Intrepid Entrepreneurs, a non-profit designed to catalyze the power and promise of young people and women to fundamentally advance their societies, recruited nine startups for the inaugural cohort of the Next Health Accelerator.

Female, African entrepreneurs with a minimum viable product (MVP) from 26 countries applied to the program. After a rigorous review process, nine startups from seven countries were selected to begin the program in March 2021. The investor readiness accelerator is six months long and includes $15,000 seed funding, international mentors and partners, business support services, and value chain access.

The Next Health Accelerator’s focus on sexual and reproductive health is founded on the premise that unmet needs for sexual education, menstrual hygiene management, family planning, medication abortion, and STI diagnosis and treatment will be most sustainably delivered by local African enterprises.

Sexual and Reproductive Health issues directly affect 300 million women and girls on the continent and the productivity of the entire continent. For the continent to prosper and support its burgeoning youth population, it must harness the demographic dividend with access to equitable healthcare and economic opportunities. Next Health Accelerator addresses both.

Next Health Accelerator

The 2021 cohort includes:

  • Rocket Health: Provides telemedicine and pharmacy services for SRH needs including convenient lab test retrieval and medication delivery in Uganda
  • Verifie: Delivers STI self-tests and treatment products via doorstep delivery in Ghana
  • Pharmaserve: Specializes in delivering high-quality pharmaceuticals in Nigeria through a fully integrated inventory monitoring system
  • Girls Pride: Provides menstrual hygiene management education and skills training to create reusable pads in The Gambia
  • Pad-Up Creations: Employs over 100 people in Nigeria to produce single-use, chemical-free pads sold in 16 countries
  • Valorigo: Manufacturers single-use sanitary eco-friendly pads made from locally grown bamboo in the Congo
  • The Grace Cup: Delivers SRH education and reusable menstrual cups in Kenya
  • Kosmotive: Provides SRH information and access to SRH self-care products in Rwanda
  • Massira: Delivers SRH information interactively as well as access to SRH services and products through an online community in Ghana 
SEE ALSO |  Microsoft 4Afrika Partners Tony Elumelu Foundation

Lindsey Simmonds, the Co-founder of Intrepid Entrepreneurs in a press statement said,

“After 15 years in philanthropy, I believe now more than ever that it is women who will solve women’s health challenges and it is Africans who will solve Africa’s development challenges.”

She continued that, development policies made in Washington, D.C. or London need to make room for the power and promise of the youth and women on the African continent. And on this premises, their Next Health Accelerator catalyzes African startups to investor readiness to make scalable, sustainable impact imbued with the commitment and determination that only comes from homegrown ideas.

Visit the intrepidentrepreneurs.org to learn more about the Next Health Accelerator 2021.

Continue Reading

Got News for us?

Submit Press Release/News: Have you recently launched your startup, raised funding or any news about your company? Email us at editor@thespiritedhub.com. We will be happy to share your story with the world!

order now

happening in Africa