- Kuramo selected as Fund Manager following a competitive process led by UNDP
- The $100M fund is targetted at redefining access to funding for Ethiopian SMEs and innovative
- Kuramo Capital recognised at PEA Awards for investing in TransCentury PLC
Nairobi, Kenya, December 5, 2024 – Kuramo Capital Management, an independent investment management firm championing private commercial capital into Africa has been selected as the fund manager for the Enterprise Financing Facility (EFF) in Ethiopia, following a competitive bidding process led by the United Nations Development Programme (UNDP).
The company, based in Kenya with offices in Lagos and New York, will oversee the establishment and management of the $100 million blended finance facility, targetted at reshaping financial support for Ethiopia’s small and medium-sized enterprises (SMEs) as well as innovative startups.
According to Kuramo Capital’s Co-CEO Shaka Kariuki, this is a testament to Kuramo’s innovative approach to championing commercial catalytic capital not only to East Africa but also the continent.
“Majority of our investments are actually in Kenya. However over the last 10 year, we have been making investments in Ethiopia. This is another testament of Kuramo’s ability and innovative investing philosophy as we continue to mobilize capital not only in Kenya but across African markets,” said Mr. Kariuki
He added, “The idea is to integrate global best practices that will further promote foreign capital inflow into Ethiopia as well as set Ethiopia on a developmental path to unlock funding for SMEs and innovative startups geared towards driving economic growth.”
According to Kuramo Capital’s Managing Director, Mumo Muthengi, this is the first time trying to domicile a fund in Ethiopia.
“We are looking to finalize the set-up of the fund by end of first quarter 2025 and then by first half of the year, we should have it up and running. The whole ecosystem in Ethiopia are extremely keen on this project. We have a lot of buy in from the government, from UNDP, from the regulator, they want to see this succeed and they are being deliberate in driving this change so that ultimately, they can bring capital to the SME and start up ecosystem,” said Mr. Muthengi
As the pioneering fund-of-funds for sub-Saharan Africa, Kuramo Capital has had a tremendous impact in leading catalytic capital into the Sub-Saharan Africa private equity ecosystem. It has served as an anchor investor in 15 first-time indigenous private equity funds and has played a significant role in raising over $3.5 billion toward investing in sub-Saharan African companies
Kuramo has direct and indirect investments in 200 companies in 30 sub-Saharan African
countries including Kenya and Nigeria. They have invested in various sectors including Fast-Moving Consumer Goods, Infrastructure-Power, Agribusiness, Technology, and Financial Services.
