Startups in sub-Saharan Africa now have the opportunity to access a new $40 million impact fund from Palladium, a global consulting firm.
This funding is particularly aimed at empowering founders with startups that have high growth potential in agribusiness value chains and off-grid clean energy.
Palladium’s first impact fund, codenamed Impact Fund I, will be invested across Nigeria, Ghana, and Kenya. Nigeria, for instance, has a broad agribusiness sector, which recently attracted a $300 million funding from international aid agency, United States Agency for International Development (USAID).
Similarly, Ghana has a market with a high potential for renewable energy, especially in hydropower, biofuels, and wind which is still largely unexploited.
Throughout its 50 years of operation, Palladium has directed funding towards solving the world’s most pressing challenges through partnerships with governments, businesses, and the investor community. It designed the world’s largest development impact bond (DIB) and has spent the last three years developing a strong pipeline of investment opportunities.
With Impact Fund I, Palladium will be prioritising women empowerment going by the 60:40 female to male ratio. In an official statement announcing the fund, Palladium notes that women perform the majority of agricultural activities, own a third of all firms, and are key to the welfare of their families.
However, like most funds, the Impact Fund I has its returns policy and while the details are not clear for now, it is important for founders seeking funds from Impact Fund I to keep this in mind.
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Nigerian startups raised $377m in 2019, more than twice what they did in 2018. Find out more when you download the full report.