Impact Fund Denmark, a Danish impact investor dedicated to fostering green, just, and inclusive societies while advancing the Sustainable Development Goals, has committed $15 million to the Verdant Capital Hybrid Fund (VCHF), bolstering efforts to expand financial access for underserved markets across Africa.
Impact Fund Denmark provides equity financing by investing directly in companies across developing countries. It typically acquires minority stakes of 10–30%, and up to 49% in smaller projects, sharing both financial risks and returns to ensure commercial alignment. As an active, long-term investor, the fund engages in board-level decisions, promotes ESG and impact performance, supports responsible exits, and finances projects of up to EUR 4.5 million.
The Verdant Capital Hybrid Fund specializes in deploying hybrid and mezzanine capital into African financial institutions that champion financial inclusion, particularly those catering to entrepreneurs and micro, small, and medium-sized enterprises (MSMEs). These businesses are widely recognized as the backbone of economic growth and job creation across the continent, yet they often face severe challenges in accessing affordable financing.
With a pan-African investment mandate, VCHF currently maintains an active footprint in Egypt, Ghana, Kenya, Nigeria, Uganda, Rwanda, South Africa, Tanzania, Zambia, and Zimbabwe. This broad geographic reach enables the fund to support diverse markets and foster inclusive economic development.
Commenting on the investment, Nitish Chawla, Investment Director for Financial Services at Impact Fund Denmark, stated:
An investment like this addresses a critical issue in many developing countries—the lack of financing for small businesses. By strengthening the Verdant Capital Hybrid Fund, we can empower thousands of entrepreneurs to grow their businesses, create jobs, and contribute more in taxes. This is essential for building economically sustainable societies.
