In a decisive stride, the Master Card Foundation Africa Growth Fund has expanded its portfolio by backing three fresh African investment vehicles, bringing the total number in its fold to five. The move signals renewed commitment to catalysing entrepreneurship and private sector development across the continent.
At the SuperReturn Africa conference in Cape Town late 2023, the Fund unveiled that it would channel capital into Chui Ventures, VestedWorld, and SME Impact Fund — strategic additions aimed at spurring growth-oriented small and medium enterprises (SMEs) through locally led investment vehicles.
Samuel Akyianu, Managing Director of the Master Card Foundation Africa Growth Fund, remarked, “We are excited to welcome Chui Ventures, VestedWorld, and SME Impact Fund to our expanding family of investment vehicles. These strategic partnerships represent our ongoing commitment to fostering sustainable development in Africa through impactful investments.”
Prior to this new round, the Fund had already committed capital to Aruwa Capital Management (Nigeria) and Inua Capital (Uganda) — moves that formed part of its early deployment phase under the Fund-of-Funds model.
Strategy, Scale and Selectivity: How the Fund Operates
The Master Card Foundation Africa Growth Fund is structured as a USD 200 million Fund of Funds, managed in partnership with an implementation consortium led by MEDA (Mennonite Economic Development Associates).
Its core strategy is catalytic: by providing anchor capital and taking some of the risk, it hopes to crowd in further investment to vehicles run by Africans, especially those emphasising gender equity and local leadership.
Because African-owned funds are often perceived as “higher risk” by global investors, the Fund works to de-risk them — making them attractive to additional institutional and private capital sources. By doing so, it supports SMEs through intermediaries rather than direct investment, thereby fostering a stronger local investment ecosystem.
One piece of evidence for this model in action: the Master Card Foundation Africa Growth Fund has, in one recent year, deployed nearly USD 200 million across 16 fund managers and vehicles throughout Africa.
The New Recipients: Chui, VestedWorld and SME Impact Fund
Chui Ventures
Chui Ventures — led by Joyce-Ann Wainaina — is a nascent fund investing in early-stage startups across Kenya and Nigeria. It emphasises gender inclusion from the outset, backing promising founder teams at seed or pre-seed stages. The Master Card Foundation Africa Growth Fund committed about USD 9 million toward Chui’s USD 30 million target.
VestedWorld
VestedWorld, operating across Ghana, Nigeria and Kenya, focuses on consumer, agribusiness and technology sectors. Its leadership team seeks to unlock value in undercapitalised segments of those economies. The Master Card Foundation Africa Growth Fund dedicated USD 10 million to this vehicle as its first institutional anchor investment.
SME Impact Fund
Targeting smallholder farmers and their processing supply chains, the SME Impact Fund aims to fill gaps in financing for agricultural intermediaries. The Master Card Foundation Africa Growth Fund injected USD 8 million to support its expansion.
These three join the earlier-supported Aruwa Capital Management and Inua Capital, lifting the coverage of the Fund’s support network.
Impact, Challenges and Implications for Africa
Backed by the Master Card Foundation, this Fund is part of the broader Young Africa Works strategy, which targets the creation of dignified employment for 30 million youth — especially women — by 2030.
Thus far, implementation data show both promise and learning curves. For example, the Master Card Foundation Africa Growth Fund has committed nearly USD 200 million to 16 African fund managers, though deployment pace and risk mitigation remain key pressures.
One intriguing development: in early 2025, the Master Card Foundation decided to withdraw a $100 million commitment it had made to 54 Collective, a prominent African VC firm. The partnership was set to end by April 2025, according to a report by Rest of World.
That move has stirred debate. Some argue it reflects recalibration of focus, while others see it as a signal that philanthropy-driven investment models must evolve. Rest of World+1
Still, despite such exits, the Master Card Foundation Africa Growth Fund continues to play a critical role in structuring investment pathways where risk aversion is strong. Its model is being watched closely as a template for how philanthropy and development finance can combine to mobilise private capital behind African-led funds.
In Nigeria specifically, one of its beneficiaries, Aruwa Capital Management, has used follow-on funding to launch Aruwa Fund II, aiming for USD 40 million, and the Master Card Foundation Africa Growth Fund remains a key backer of that sequel fund.
Looking Ahead: What to Watch
- Follow-on capital mobilised
The real test is whether these funds can attract additional investors beyond the anchor capital provided by the Master Card Foundation. If they succeed, that would validate the de-risking thesis. - Demonstrated outcomes at the SME level
Beyond capital deployment, success will be judged by job creation, revenue growth, and how many young people — particularly women — gain stable employment in supported ventures. - Sustainability and exit strategies
The Fund must balance support with mechanisms for exit — enabling funds and underlying businesses to mature, repay capital, and recycle resources into new ventures. - Evolving philanthropic approach
The withdrawal from 54 Collective raises a question: will the Master Card Foundation shift strategy further, or will it double down on the Fund-of-Funds model? - Scaling in Nigeria and West Africa
Nigeria, with its sizeable youth population and dynamic entrepreneurial base, remains a key testbed. Continued success there would be a strong proof point for the Fund’s broader ambitions.
Conclusion
The Master Card Foundation Africa Growth Fund has taken a bold step by expanding its investments to Chui Ventures, VestedWorld and SME Impact Fund. This move deepens its commitment to empowering African-led funds to support SMEs. While challenges remain — particularly in attracting co-investors and delivering measurable outcomes — the approach holds significant promise for transforming the investment landscape across Africa.
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