New Palladium fund to boost capital for SMEs in Africa’s emerging markets
The global consultancy Palladium has announced its first impact investment fund to bridge the financing gap for small businesses in sub-Saharan Africa. The fund chose two key impact investment areas: agriculture and off-grid solar energy.
The fund – named Palladium Impact Fund I - is expected to raise USD 40 million to provide much-needed capital for SMEs in Africa’s emerging markets. According to Africa Investor, the fund will focus on agribusiness value chains and off-grid clean energy in Nigeria, Ghana and Kenya.
With its impact investment, Palladium Impact Funds aims to alleviate poverty and economically empower over 500,000 rural households. It intends to create at least 3,500 full-time jobs, of which 60 per cent will be for women.
Palladium has already made two direct impact investments. In Ghana, the fund invested in Naasakle, a mother and daughter-owned shea nut harvesting and processing business. The second investment target is PEG Africa, an off-grid solar energy project. Palladium has a further 10 investments under due diligence.
Further reading on afraininvestor.com