Businesses across Africa are set to benefit from a new $500 million (Sh64.6 billion) fund from Kuramo Capital Management at a time when businesses on the continent are experiencing a huge capital deficit.
According to the latest data by AfDB, SMEs contribute over 40 per cent of GDP in many African countries and employ nearly 80 per cent of the continent’s workforce, yet only about 20 per cent of SMEs in Africa have access to formal financing, leaving a massive funding shortfall estimated at $330 billion (Sh42.6 trillion) every year.
The reports indicate that the funding gap limits their ability to expand, create jobs and innovate.
The shortage is particularly acute for women-owned businesses and firms operating in high-growth sectors.
The investment platform, which was unveiled on Monday, seeks to accelerate enterprise growth, job creation and access to long-term capital.
The investment manager announced it has secured mandates worth approximately $500 million, equivalent to about Sh64.6 billion, with the capital coming mainly from African pension funds and development finance institutions.
The new investment platform marks a shift towards mobilising more domestic capital to finance African businesses, reducing reliance on foreign investors while supporting private sector expansion across the continent.
Kuramo said the funds will target key growth sectors, with a strong focus on East Africa, enterprise development and businesses that have traditionally struggled to access patient, long-term financing.
The commitments include the Investment in Digital and Creative Enterprises (iDICE) programme with the Bank of Industry, the MEMA East African pensions vehicle and the Kuramo Africa Opportunity Fund IV Nigeria, backed by Nigerian pension funds.
The platform also consolidates Kuramo's existing mandates, including the Wholesale Investment Impact Fund (WIIF) and Moremi Capital Management, its gender-lens investment initiative.
Through the Moremi Accelerator, Kuramo has identified 45 first-time women-led fund managers and has already helped mobilise more than $100 million for women-led businesses across Africa.
Kuramo believes greater participation by African institutional investors can help narrow this gap while delivering competitive returns.
Since its establishment in 2010, the firm says it has catalysed more than $3.5 billion for African private equity firms and businesses.
Its investments have supported more than 20 fund managers, anchored over 15 investment funds and financed more than 200 companies directly and indirectly.
The investments have also supported over 500,000 jobs while positively impacting more than three million lives.
Kuramo Founder and Chief Executive Officer Walé Adeosun said the platform represents the firm's next phase of growth by increasing the use of African capital to finance African opportunities.
Co-chief executive officer Shaka Kariuki said Kuramo's experience, investment track record and regional networks position the firm to help pension funds diversify into alternative investments while supporting businesses that can drive sustainable economic growth across the continent.
