East Africa: Vital Capital makes two investments
Vital Capital, an impact investor in sub-Saharan Africa, has announced the approval of two new loans from its Vital Impact Relief Facility (VIRF), which was launched last year to help fundamentally sound African businesses navigate short-term challenges.
The two loans were made to Sollatek, a manufacturer of solar and voltage control products, and Privamnuts, a macadamia nut processor and exporter which is leading the modernisation of the macadamia industry in Kenya.
The solar and power control products that Sollatek distributes provide essential services to rural and peri-urban households and businesses in East Africa that are without access to the grid or stable energy sources. Sollatek’s photovoltaic systems represent the most affordable option for electrifying homes in many rural, sparsely populated areas.
Privamnuts, which sources its nuts from the slopes of Mount Kenya, provides a key link between the more than 10,000 smallholder farmers who represent its exclusive suppliers and the export markets, where Kenya is the third-largest macadamia nut producer in the world. Privamnuts’ strategic goals include improving smallholders’ access to agricultural training, the financial health of farmers, and opportunities for women, who make up the majority of Privamnuts’ smallholder suppliers and employees.
“We are excited to be partnering with Vital Capital, with whom our goals are aligned,” said Privamnuts’ managing director, Patrick Mukundi Mbogo. “Privamnuts and Vital believe in creating high quality jobs that can improve the economic and social well-being of workers and uplift communities without sacrificing performance.”
Vital launched the debt facility last year amid the global pandemic, when it was clear that economic shocks caused by the spread of Covid-19 threatened the ability of even financially strong African businesses to continue providing essential jobs and essential services to communities in need.
“While the global economy may be emerging from the pandemic, many impactful small- and medium-sized businesses in Africa face ongoing challenges at the same time that foreign direct investments in Africa are falling,” said Nimrod Gerber, managing partner of Vital Capital. “The Vital Impact Relief Facility was designed to give these SMEs a chance to fight through these short-term challenges and realise their visions of becoming prosperous companies benefiting African workers and communities.”
When VIRF was created in April 2020, Vital indicated it would initially launch in East Africa but is committed to expanding that focus to West Africa, including Ghana, Côte d’Ivoire, and Senegal.
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