AFRICA – Global Social Impact Investments (GSI), an impact investment fund manager, announced a €15 million (US$16.24m) investment from the Spanish Agency for International Development Cooperation (AECID).
This investment aims to bolster GSI’s investing strategy in high-impact African companies.
The funding is channeled through the Development Promotion Fund (FONPRODE), managed by AECID with advisory support from COFIDES, the Spanish development finance institution (DFI), known for financing sustainable and developmental projects worldwide.
GSI, through its GSIF Africa RAIF vehicle, targets investments in companies that deliver substantial social and environmental benefits across sub-Saharan Africa.
These investments aim to uplift the region’s most vulnerable populations, including small-scale livestock, agricultural producers, and their families.
In addition to the €15 million (US$16.24m) direct investment, AECID is providing €3.5 million (US$3.79m) in technical assistance.
This assistance is designed to enhance the operational capabilities of the invested companies and rigorously assess their additional benefits and impacts.
“The Government of Spain is firmly committed to promoting impact investment through collaboration with public and private entities,” Eva Granados, president of AECID and secretary of state for cooperation, commented.
“Our goal is to achieve significant development milestones for all sub-Saharan African countries, ensuring regional stability, sustainable economic growth, and the dignity of all its inhabitants.”
Since its inception in December 2020, GSI’s African investment portfolio has achieved an annualized net return of 4%.
Notable companies in the portfolio include Burn, a social enterprise transforming the cooking sector in East Africa by selling low-cost stoves that consume half the fuel and significantly reduce carbon emissions. This provides health and economic benefits to millions of families.
Another critical company is JKCC, a Ugandan enterprise that improves the livelihoods of thousands of small coffee growers by enhancing their land yields and enabling them to sell their coffee at competitive prices.
“We are very pleased with the support of AECID and COFIDES for our impact investment model,” María Ángeles León, co-founder and president of GSI, said.
“At GSI, we believe that investing in high-impact small and medium-sized enterprises is crucial for generating sustainable wealth and employment in sub-Saharan Africa, thereby contributing to a more just and prosperous future in the region.”
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