Opportunity Title: Mastercard Foundation Africa Growth Fund (MFAGF)

2022 - 2030

The Mastercard Foundation Africa Growth Fund (MFAGF) is a groundbreaking initiative designed to foster the growth of early-stage, growth-oriented small and medium-sized enterprises (SMEs) in Africa. This Fund of Funds operates through African investment funds to channel support and investment into the SME sector across the continent.

Key Features of the MFAGF:

• Fund Size: USD $200 million
• Duration: 2022 - 2030
• Focus: Supports early-stage, growth-oriented SMEs
• Operational Model: Invests in funds/investment vehicles that subsequently invest in SMEs
• SME Application Policy: MFAGF does not directly invest in SMEs; applications from SMEs will not be considered.

Objectives of the MFAGF:

1. Catalyze SME Growth: By investing in African investment funds, the MFAGF aims to stimulate the growth and development of SMEs that are crucial for economic development on the continent.
2. Support Local Investment Funds: Empowering local investment vehicles to effectively deploy capital to promising SMEs, ensuring that investments are aligned with regional economic goals and market conditions.
3. Drive Economic Transformation: By nurturing SMEs, the fund seeks to drive broader economic transformation, creating jobs, fostering innovation, and contributing to sustainable development.

Investment Strategy:

• Selection of Investment Funds: The MFAGF meticulously selects African investment funds that have a proven track record of supporting SMEs, a strong understanding of local markets, and a commitment to driving growth and impact.
• Capacity Building: Alongside financial investment, the MFAGF provides support to these funds to enhance their operational capabilities and ensure they can effectively manage and grow their SME portfolios.
• Impact Measurement: The fund emphasizes the importance of measuring the impact of its investments, focusing on job creation, economic growth, and social impact within the communities where the SMEs operate.

Importance of the MFAGF:

• Bridging the Funding Gap: Many SMEs in Africa struggle to access the capital needed for growth. The MFAGF addresses this gap by mobilizing resources through local investment funds.
• Empowering African Entrepreneurs: By channeling investments into SMEs, the fund empowers entrepreneurs to scale their businesses, innovate, and contribute to their local economies.
• Promoting Sustainable Development: Investments are geared towards businesses that not only have high growth potential but also align with sustainable development goals, ensuring long-term positive impact.

Conclusion:

The Mastercard Foundation Africa Growth Fund represents a significant commitment to unlocking the potential of SMEs in Africa. By leveraging the expertise and reach of African investment funds, the MFAGF aims to catalyze economic growth, create jobs, and foster innovation across the continent. This initiative is a critical step towards building a prosperous and sustainable economic future for Africa.

For further details and to stay updated on the progress of the MFAGF, visit the Mastercard Foundation's official website.