Goodwell Investments launches €150m uMunthu II fund to fuel African innovation

Goodwell Investments, a Netherlands- based investment firm has launched a €150m fund – uMunthu II to fuel the next wave of African innovation.

Goodwell is raising the fund 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.

It is interesting to note that while other entities 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. 

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.” 

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 EUR 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 EUR 2.5 billion worth of financial services to over 30 million households, directly created 35,000 jobs and reach consumers in 47 countries. 

In 2021, Goodwell launched Goodwell V, €50m Fund to Support Hight Growth African SMEs. Some of Goodwell recent involvement in African investments include:

• led a $7.5 million Series A investment in Asante Financial Services in 2021,
• a $1.5 million investment in Mozambique’s Chicoa fish farm in 2020;
• led a $2.1m Investment in Good Nature Agro in Zambia in 2020