IIF, Kuramo Launch Fund to Support MSME Financing
The Impact Investors Foundation (IIF), in collaboration with Kuramo Capital Management, on Tuesday in Lagos, introduced the Wholesale Impact Investment Fund (WIIF) to Pension Fund Administrators (PFAs) alongside other pension stakeholders and regulator.
WIIF aims to address the critical financing gap faced by Micro, Small, and Medium Enterprises (MSMEs).
The fund is an initiative designed to critalise thriving impact investment ecosystem in Nigeria and drive long-term economic growth, job creation, and significant social impact.
Aligned with Nigeria’s National Development Plan 2021 to 2025, WIIF provides PFAs with a unique opportunity to invest in an asset class that not only offers attractive financial returns, but also aligns with Nigeria’s broader development priorities.
Mr Afolabi Oladele, Chairman of IIF, at the event, said the Federal Government and the National Advisory Board of Impact Investment (NABII) plans to establish one billion Naira fund to boost the WIIF.
Oladele,speaking at a roundtable for PFA Investors on the Nigerian WIIF, put the first tranche of the Nigerian WIIF as 100 million dillars, of which the Federal Government had committed 50 million dollars.
According to him, the government will ultimately invest up to 70 per cent while the private sector to contribute 30 per cent.
The IIF chairman noted that, as conceptualised, the fund acts as a social investor in social enterprises, and simultaneously as a market builder, while principally targeting MSMEs.
He said that the fund also acts as an alternative funding for development to keep sustainable market for social investment and enable social enterprises.
Oladele said that to lead funds raised and investment in Nigeria, NABII, through an open and competitive bid, had selected Kuramo Capital, an experienced fund manager, with credible track record.
“Kuramo is not only a known name in Nigerian investment space, but stands to take credit with development of private equity in Nigeria, “he said.
Ms Etemore Glover, CEO of WIIF, opined that with Nigeria’s growing demand for economic development and job creation, WIIF represents an ideal vehicle for PFAs to participate in the country’s progress while achieving both financial and social objectives.
Glover described WIIF as a transformative step towards bridging the financing gap for MSMEs in Nigeria.
According to her, by engaging PFAs in the investment space, WIIF is aligning financial returns with the broader goal of sustainable development, which benefits the entire economy.
She noted that the forum would foster collaboration and explore innovative ways to channel local capital towards impact-driven initiatives.
Mr Wale Adeosun, Chief Executive Officer(CEO), Kuramo Capital, expressed excitement about the partnership, describing it as an opportunity to capture attractive returns, diversification into private investment and knowledge transfer.
Adeosun noted that purchasing power preservation was critical for pension funds and their participants.
Dr Emeka Obi, Permanent Secretary, Federal Ministry of Budget and Economic Planning, emphasised the need for fund managers to deploy capital with sustainability and impact.
Obi noted that the WIIF has the capacity to create an immeasurable positive impact for the people and the planet
He said: “The fund is also fully supported by the government through its commitment of 50 per cent of the the first tranches of the fund 50 million dollars to help the fund reach first close.
The Director-General, National Pension Commission(PenCom), Mrs Omolola Oloworaran, said there was need for alternate investment portfolios, noting that the traditional investment class could no longer sustain the PFAs and return on investment.
Oloworaran, represented by Dr Abdulqadir Dahiru, Head Investment Supervision at PenCom, said that the commission was already reviewing investment guidelines for the PFAs. She added that the commission would release an ESG principal to become effective by the end of the year.
“The duty of PenCom is to put out the framework that allows the PFAs to do their business, but the ultimate decision as to where to invest and how much to invest lies with the PFAs, considering the risk involved and return on investment.
“This engagement is coming at the right time; it aligns with a lot of business opportunities, “she said. At the roundtable, PFAs shared insights on the current investment climate and explored the potential of collaborating to unlock capital for impact-driven investment.
Dignitaries at the event include, Mrs Ibukun Awosika, Chaiman, NABII and Vice Chairman, GSG Impact, Mr Agudah Oguche, CEO, PenOp, Amma Lartey, CEO, Impact Investing Ghana and Drew Von Glahn, Executive Director at Collaborative Frontier Finance
