Today, Goodwell Investments B.V. launched their most ambitious institutional investment fund yet, uMunthu II.
Where other firms have become more cautious in the face of economic uncertainty, Goodwell recognizes the immense untapped opportunity of the African market, and is expanding their commitment to ignite the growth of inclusive businesses in the region.
Goodwell is raising €150 million to finance innovative, scalable, small and medium-sized businesses that improve the access and affordability of basic goods and services for un(der)served consumers in Africa. As a first-mover, Goodwell will once again work as a trailblazer, attracting others in the wider ecosystem to invest in previously overlooked sectors.
Expanding the potential of African entrepreneurs
In recent years, as markets shift and stagnate in most other geographies, investors are waking up to Africa’s huge economic potential. Across the continent, an increasingly favorable political environment, a young, highly motivated workforce and significant infrastructure improvements are converging to create an atmosphere of exciting possibilities. In the first half of 2022, venture capital investments in Africa reached $3.5 billion – a 133% increase compared to 2021.
This new wave of African development is being spearheaded by local entrepreneurs with firsthand knowledge of their customers’ needs and challenges. According to Els Boerhof, one of Goodwell’s managing partners: “Our mission-driven investment philosophy delivers both financial and social returns by taking an extremely local approach. Our repeated success is directly connected to working closely with our portfolio companies, bringing together both regional expertise and access to a global business network.”
Purpose and profit combine to boost economic inclusion
Despite the positive outlook for the continent as a whole, Africa’s recent prosperity has not translated into better living standards for the majority of its citizens. uMunthu II will invest in companies that deliver affordable basic high-quality goods and services to un(der)served populations. The diversified investment portfolio will focus on financial inclusion (35%), food and agriculture (25%), and mobility and logistics (15%), with a secondary focus on healthcare, education and energy.
The fund will be co-managed by Alithea Capital, Goodwell’s long-term investment partner based in Lagos, Nigeria. To date, the fund has received €50 million in commitments from private investors, family offices and foundations. The capital will be channeled into at least 35 new portfolio companies.
uMunthu II builds on Goodwell’s proven track record
With 15 years’ experience leading impact-focused investments in Africa and India, uMunthu II is Goodwell’s latest fund to support inclusive growth. It is expected to continue the consistent excellent results of its predecessor funds which combined significant social impact with double digit internal rates of return, including 10 exits. To date, the company’s 35 existing portfolio companies have provided over €2.5 billion worth of financial services to over 30 million households, directly created 35,000 jobs and reach consumers in 47 countries.