This collaboration formalized through a Memorandum of Understanding (MoU) signed on November 5, 2024, seeks to drive angel investment and introduce innovative debt financing models to accelerate the growth of small and medium-sized enterprises (SMEs) across the continent.
MsFiT Ventures is a Cape Town-based SME debt fund that focuses on providing flexible working capital to fast-growing, asset-heavy SMEs in Southern Africa. Currently, MsFiT is raising a $4.5M proof of concept (POC) fund to invest $5k to $150k in female-led and -operated SMEs that use basic technology to scale infrastructure. The Fund’s innovative debt model offers liquidity to limited partners (LPs) as early as two years after capital deployment while supporting female-led small traditional businesses with access to capital and strategic guidance, market access, and exit opportunities.
The Key Objectives of this Partnership
- Raising Awareness: The collaboration aims to promote ABAN’s role in angel investment and highlight MsFiT Ventures’ debt financing solutions among African and diaspora investors.
- Capacity Building: MsFiT will lead educational sessions to introduce ABAN members to debt vehicles, enhancing their investment strategies.
- Collaborative Events: Together, the organizations will host roundtables, seminars, and webinars to engage stakeholders and foster investment opportunities.
The partnership will be overseen by a dedicated committee comprising representatives from both organizations. This committee will guide the collaboration’s agenda, ensuring alignment with the shared mission of driving sustainable growth and innovation.
MsFiT understands the importance of debt solutions that create sustainable businesses, which is why its debt products have flexible repayment terms tailored to SMEs’ needs. The Fund provides local currency-denominated debt structured as 3-6 month working capital and supply chain finance revolving credit facilities. Beyond providing access to capital, MsFiT is a long-term partner that provides hands-on support to founders to help them thrive and achieve sustainable growth. Commenting on the partnership, Jill Curr and Egla Ntumba, Co-founders and Managing Partners of MsFiT Ventures highlighted the importance of this collaboration:
“This strategic partnership is an exciting step towards unlocking the potential of Africa’s SMEs. By merging ABAN’s extensive network with MsFiT’s innovative financing solutions, we aim to fuel growth in Africa and beyond to create impact at scale. This partnership reflects our joint vision to bridge the SME financing gaps, create sustainable growth opportunities for small traditional businesses, and strengthen the value proposition for angel investing on the continent.” Jill Curr, Managing Partner, MsFiT Ventures
“Our partnership-based approach to SME lending allows us to leverage the deep expertise of ABAN angels to provide hands-on support tailored to the individual needs of each of the 20 – 30 SMEs we will invest in through the POC fund. ABAN’s mission to advance angel investing in Africa creates a natural synergy with our focus on unlocking early liquidity for LPs through self-liquidating products that create exit opportunities for angel investors, as well as strong financial returns that encourage them to remain active in the early-stage investment space.” Egla Ntumba, Managing Partner, MsFiT Ventures
Here is what Fadilah Tchoumba, ABAN CEO, had to say about this groundbreaking collaboration:
“Our partnership with MsFiT reflects our commitment to diversifying investment options for our members. This collaboration paves the way for new opportunities, fostering resilience and prosperity across Africa’s entrepreneurial landscape. It aligns seamlessly with ABAN’s mission to drive angel investing across the continent by providing education, building networks, and influencing policy. By leveraging MsFiT’s innovative debt vehicles, we’re enhancing our members’ ability to support scalable, impactful startups, contributing to our overarching goal of creating 10,000 jobs annually and generating sustainable economic growth. We envision building a more inclusive and vibrant ecosystem for African entrepreneurs, fully aligned with ABAN’s 2024 theme: Consolidating Angel Investing Across Africa and the Diaspora.”
By combining ABAN’s expertise in fostering angel investment and MsFiT’s unique debt financing solutions, we are laying the groundwork for a future where small businesses have access to the resources they need to thrive. This effort supports job creation and accelerates sustainable growth across the continent, ensuring that Africa’s entrepreneurs are empowered to lead and innovate.
