an impact investment event being introduced for the first time in 2018.
ICA centres around a conference event to be held in Lusaka on
2 – 3 October which will be bringing together impact investors (from overseas and the region) and Zambian businesses that are seeking investment in order to scale up. The focus of the Impact Capital Africa process will be on actually doing deals and it is hoped that at least some agreements will be signed during the conference.
If you are looking for inward investment to seriously grow your business this could well be an opportunity you would want to explore.
The primary focus of ICA is successful Zambian companies looking to raise from approximately
$250,000 – S5 million. This could be through equity, debt or a blend of mechanisms.
An additional opportunity exists for companies in earlier stages of growth who are looking for smaller amounts in the region of $50,000 – $200,000, principally through angel investor participation.
What is impact investment?
“Impact investments are investments made into companies, organizations and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments … target a range of returns from below market to market rate, depending on investors’ strategic goals.”
What that means for you is that if your company can demonstrate that an investment will deliver a social or environmental benefit as well as a solid financial return, there are investors who would be interested, maybe even at below market rates. However, accessing these finance streams needs specialised networks which is just what Impact Capital Africa is offering.
Getting ready for raising finance
To be successful in raising finance, your company has to be well prepared for the investment process. That normally requires the help of a specialist adviser to make sure that the books are straight, the strategy is well developed and management is ready for the investor’s due diligence process. This important preparation is not a cost-free operation, with both a fixed fee and a success fee which is payable if your capital raise is successful. This is where the Private Enterprise Programme Zambia (PEPZ) can help.
Through the Impact Capital Africa process, PEPZ can support suitable companies with a grant of up to 75% of the FIXED FEE associated with preparing for capital raising. This will significantly reduce the cost associated with raising finance and will ensure that your business can stand the best chance of succeeding in this process. PEPZ will introduce you to a number of companies that specialise in this work but the choice of which to work with would be yours.
You can check out more details at the Impact Capital Africa website:
If you would like to discuss this further or have any queries, please do not hesitate to get in touch.
Email [email protected]
The team behind Impact Capital Africa
- The Musangu Foundation, a UK-based social enterprise which uses collective capital from its partners to fund and invest in entrepreneurs, social enterprises and NGOs, with a focus on livelihood creation and financial independence.
- Private Enterprise Programme Zambia PEPZ’s role within ICA is to work with specialist business advisers (including Open Capital Advisors and Kukula Capital) to find and prepare suitable companies in Zambia who are looking for investment.
Exigent Events, a specialist global events organisation team.