EDFI AgriFI, the EU-Funded Agriculture Financing Initiative will provide USD 2 million to Inua Impact Fund to support up to 30 investments into early stage and high-growth Ugandans small and medium-sized enterprises (SMEs).
Kim Kamarebe, Managing Director at Inua Capital, explained: “We are honoured to partner with like-minded impact investors who share our vision to catalyse and accelerate high-potential Ugandan enterprises that are providing solutions for Uganda’s most pressing needs. Environmental, Social and Governance (ESG) and Gender-Smart Investing are as core to the mission of Inua Capital as our focus on delivering strong risk-adjusted returns, and we are incredibly grateful to these investors for their commitment to our unique perspective.”
Inua Impact Fund will be the first resident impact investment equity fund in Uganda that will be investing in high-potential entrepreneurs and SMEs with financing needs lower than $500,000. Inua Capital apply a gender lens in its investments to correct gender imbalances in the private sector economy and narrow the gap for women in access to capital.
The Ambassador of the European Union to Uganda, H.E. Jan Sadek, said: “We are delighted to see this investment from AgriFi ACP regional window land in Uganda, with Inua Capital. Targeting equity investments of between $100.000 and $500.000 is complementary to the existing access to finance facilities that the EU is supporting in Uganda and very much welcome. We trust Inua Capital will deliver on the impact objectives of the fund. Congratulations to all involved in the deal making!”.
Accounting for a quarter of the country’s GDP, and three quarter of employment, agriculture represents a crucial growth opportunity for Uganda. Through this investment in INUA Impact Fund, EDFI AgriFI will be able to invest in around 10 agri SMEs, which should indirectly support around 3,000 smallholders over 10 years. Inua Impact Fund is the first investment of AgriFI financed under its African, Caribbean, and Pacific (ACP) regional window that started in January 2022. The aim of this window is to enable SMEs, financial institutions and impact funds in ACP countries working in 11 priority value chains to access long-term funding with the end goal of improving farmers’ livelihoods.
OACPS Expert on Value Chains Yvonne Chileshe stated: “This first investment of EDFI AgriFI in Uganda, within the OACPS – EU Framework Programme on Agriculture Value Chains development, will facilitate access to the much-needed finance, focusing here on smallholders as engine of economic development and contributing to a more sustainable environment.” She further added that this inclusive and outcome-oriented development action will also address environmental, social and economic dimensions of sustainable development.
Guillaume Simões, Investment Officer at EDFI Management Company concluded: “For most companies, Inua will be the first equity investor. The fund will not only provide growth capital but also business support services and technical assistance which should allow them to scale up. With more than 80% of agricultural production in Uganda done on farms below 2 hectares, and as trade creates opportunities for local and regionally exported food crops such as maize and dairy, our investment in Inua will contribute to supporting businesses having a positive impact on food security and that improve the livelihoods of farmers.”