Goodwell launches new Africa-focused €20m fund aimed at inclusive economy

Dutch impact investor Goodwell Investments has announced that it has launched Goodwell IV, a €20-million fund for investments in the inclusive economy in Sub-Saharan Africa.

In a statement today (5 September), the impact investor said the launch of the fund “specifically meets” growing demand for impact investments from private investors, family offices and foundations that approached Goodwell Investments following the successful closure of its predecessor fund, Goodwell III, earlier this year.

Responding to questions from Ventureburn, Goodwell Investments director for marketing Nico Blaauw said the new fund has “similar specifics” as its previous fund — Goodwell III.

Goodwell IV will invest a minimum ticket size of €250 000 in companies that offer products and services to the unserved and underserved.

“As to fundraising, the new fund is open for investments with minimum ticket size of €250 000,” explained Blaauw (pictured above).

Goodwell IV will aim to achieve maximum social impact while delivering a market rate return to investors. The impact investor further stated it is convinced that providing under-served consumers with access to energy, health care and financial services will contribute to a more sustainable and inclusive society.

This, it said, is best achieved by providing capital and management support to companies that deliver these products and services.

The new fund will invest in fast-growing companies that offer products and services to the unserved and underserved.

Half of the fund, €10-million, will be invested in financial services, while the remainder will go to agriculture, health and sanitation, energy, and transport.

Blaauw emphasised that the fund will only invest in early-stage businesses that have the following: a proven business model, a certain traction, generated turnover, are scalable and have potential for growth.

In all, Blaauw said Goodwell Investments have made nine investments through its Goodwell III fund. These he said included investments into Nigerian fintech Lidya and South African payments company MFS Africa which the Dutch impact investor backed with $1.5-million.

“We expect to announce some new investments later this year,” added Blaauw.

Read more: How to access Goodwell’s €20m fund for African startups
Read more: How MFS Africa made history for African fintechs with $4.5m Chinese-led deal

Featured image: Goodwell Investments director for marketing Nico Blaauw (Supplied)