The proposed operation consists of Okavango Fund SCSp (the “Fund” or “Okavango”), an impact fund aiming to generate both commercial returns and natural conservation and rural livelihood improvements by investing in small and medium-sized enterprises (“SMEs”) in East and Southern Africa. The Fund targets total commitments of USD 75m.
The Fund will target companies at different stages of development and will invest mainly at growth capital stage in fast-growing companies. The Fund will invest in companies operating in the food, climate technologies and/or nature tourism sectors with a view to generate both commercial returns and nature conservation and rural livelihood improvements.
The Fund will be managed by a new independent management company (“Okavango” or the “Manager”), composed of a team made of six experienced professionals. The Manager has received the support of the African Wildlife Foundation (“AWF”), a nature conservation organization with nearly 60 years of experience in Africa. Through this key partnership, the Manager will benefit from significant expertise on conservation, natural capital, ecosystem service protection, and rural livelihoods, to further enhance the Fund’s environmental and social impact performance.
The Fund is expected to support the growth of around eleven companies that will create employment opportunities for local residents.
The Fund intends to generate financial returns coupled with a significant developmental impact. Okavango will adopt a strong hands-on approach in the portfolio companies, providing support beyond capital.
This operation will focus on developing the private sector, supporting SMEs and job creation. In addition, the Fund is expected to generate a superior development impact in view of its nature conservation and rural livelihood benefits.
The Fund is expected to contribute towards several Sustainable Development Goals (SDGs), notably SDG 6 “Clean water and sanitisation”, SDG 8 “Decent work and economic growth”, SDG 12 “Responsible consumption and production”, SDG 14 “Life below water”, and SDG 15 “Life on land”.
The team will support the growth of the portfolio companies through financing and a hands-on approach by systematically taking a Board seat, carrying out quarterly reviews, bringing sector expertise and international network.
EIB committed USD 13m equity investment in the Fund. Fundraising period of the Fund is currently still open to new investors. A commitment by other AforE members would trigger a first closing of at least USD 30m.
