Financial Sector Deepening Africa
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
Financial Sector Deepening (FSD) Africa is a Kenya-incorporated development agency funded by the UK Foreign, Commonwealth & Development Office (FCDO). FSD Africa will manage and implement the Manager Finance Facility through its Venture Finance Platform and Early-Stage Finance pillar, supported by FSD Africa Investments (FSDAi) for transaction structuring and portfolio oversight.
What is our funding objective?
The objective of the Manager Finance Facility (MFF) is to strengthen Africa's emerging ecosystem of Alternative Local Capital Providers (ALCPs) by providing catalytic, returnable capital and targeted technical assistance that enable these fund managers to test and validate financing models, strengthen institutional capacity, build track records, and progress towards attracting commercial and institutional investment. The facility seeks to address the pre-commercial financing gap faced by African-led fund managers and financing intermediaries that support underserved small and growing businesses, particularly in frontier and Tier 2 markets. From an IYBA-MCP Market Creation perspective, the facility aims to create a stronger pipeline of investable local capital providers by financing the financiers. By helping ALCPs demonstrate viable financing approaches such as revenue-based finance, venture debt, blended finance, flexible equity, and local currency solutions, the MFF is expected to increase the availability of more appropriate capital for young and growing businesses and crowd in follow-on investment from commercial investors.
Why do we fund this investment?
The facility aligns strongly with both IYBA-MCP and FMO's Market Creation objectives by addressing a critical gap in the development of African-led fund managers. Through catalytic capital and technical assistance, it strengthens the pipeline of investable local capital providers, enabling them to build track records, attract follow-on investment, and expand access to appropriate financing for underserved SMEs and young businesses. By financing the financiers, the facility tackles a systemic constraint in the market and supports the long-term development of more inclusive and sustainable financial ecosystems.
What is the Environmental and Social categorization rationale?
N/A
- Website customer/investment
- https://fsdafrica.org/
- Region
- Africa
- Country
- Africa
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 10/12/2026
- Effective date
- 9/8/2026
- Total FMO financing
- EUR 2.00 MLN
- Funding
- Other funding