In November when it was launched, uMunthu raised €50 million. In the six months that followed it managed to raise only €7 million till its first close at €57 million. 

Venture capital fund uMunthu II is struggling to secure the financial resources it needs to finance SMEs in Africa. In an official memo published at the end of May 2023, this investment vehicle co-managed by Goodwell Investments and its Nigerian partner Alitheia Capital announced its first close at €57 million ($61.5 million).

When it was launched in November 2022, uMunthu II claimed to have received €50 million in commitments from private investors, family offices, and foundations. However, from November 2022 to the end of May 2023, the date of its first closing, uMunthu II only secured an additional €7 million. 

Nevertheless, Goodwell Investments and its partner Alitheia Capital are optimistic and hope to raise a minimum of €150 million when the fund achieves full close in two years.  

uMunthu II, which is the third joint fund between Alitheia and Goodwell Investments, plans to use the €57 million raised to invest in African companies. The fund will target start-up and growth-stage SMEs that provide basic goods and services to underserved populations.

It will also focus on businesses founded or run by women. "Funding from uMunthu II will enable these innovative entrepreneurs to build businesses that reach millions of underserved end-users while delivering positive social and environmental impact and market-rate financial returns," commented Tokunboh Ishmael, co-founder and managing director of Alitheia Capital.

For Goodwell and Alitheia, with its young and fast-growing population and rapidly expanding digital infrastructures, and innovative business models, Africa has the potential to reach mass consumer markets. They thus plan to step up their commitments on the continent to stimulate the growth of inclusive businesses in the region, and seize the "huge untapped opportunity.”

Chamberline Moko