The Africa Ecosystem Catalysts Facility will partner with locally-led ESOs in Ghana, Nigeria, and Tanzania to enhance capital flow into early-stage companies.
Nairobi, Kenya (February 20, 2025) – Village Capital, in collaboration with the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO), has launched the Africa Ecosystem Catalysts Facility (AECF), a USD 4M facility to invest in impact-creating, early-stage companies in Ghana, Nigeria, and Tanzania. The facility will debut an innovative approach to sourcing, conducting due diligence, and making investment decisions by partnering with locally-led Entrepreneur Support Organizations (ESOs).
Village Capital will partner with up to two locally-led ESOs in each market, leveraging their deep local expertise and insights to uncover and strategically invest in impact-creating companies. The facility will provide a capital pathway to support the progression of investee companies from early-revenue stages to achieving product-market fit and scaling. The facility aims to test how a capital pathway approach impacts investee companies, with the broader goal of securing larger funding rounds and strengthening ESOs’ role in the investment process.
“RVO, and more specifically the Orange Corners Innovation Fund (OCIF) program, is excited to embark on this new strategic partnership with FMO and Village Capital,” shared Kars Gerrits, Coordinator OCIF at The Netherlands Enterprise Agency (RVO). “This collaboration marks an exciting step forward, as both RVO and FMO, as Dutch development organizations, are joining forces to address critical funding gaps in the entrepreneurial ecosystems in these African countries. By building on the foundation of OCIF, we remain committed to fostering enterprise growth, with a specific focus on youth and women entrepreneurs.”
Early-stage companies in these markets drive job creation and tackle critical challenges like economic mobility, financial inclusion, the future of work, and climate resilience. However, they struggle to access capital due to limited funding options, perceived risks, and structural barriers. Locally-led ESOs play a vital role in building sustainable ecosystems by identifying capital gaps, assessing founder potential, and addressing local challenges. Yet, they remain underutilized in the investment process, leaving their expertise largely untapped and contributing to funding gaps for the companies they support.
“This partnership is the first of its kind between FMO and RVO, and it represents an exciting step forward in our collective effort to close the funding gap in these countries,” says Susan Nakami, Africa Region Lead at Village Capital. “By leveraging insights from each of the three partners, we are drawing from existing programs and partnerships that are already designed to unlock capital in these markets. Village Capital has been working with locally-led ESOs for nearly a decade, and we’ve seen firsthand how often investors overlook their expertise. Through this partnership, we’re not just unlocking crucial capital, but also strengthening local ecosystems and creating a more sustainable pathway for high-potential companies to drive economic growth and sustainability in the region.”
Speaking on FMO’s role in the partnership, Claire Nyambori, Technical Assistance Officer at FMO, shared, “Through FMO’s 2030 strategy focused on market creation, we aim to transform early-stage companies into viable, investment-ready projects. This partnership allows us to leverage our combined strengths and work directly with locally-led ESOs and businesses to create impact. We are excited to work alongside RVO and Village Capital to drive meaningful market growth and support businesses that will be central to the economic development of the region.”
For more information about the Africa Ecosystem Catalysts Facility and Village Capital’s impact investing work, including how to get involved, contact Husein Merchant at Village Capital (husein.merchant@vilcap.com).
For media inquiries and to schedule an interview with the Village Capital team, email Eva Waweru at (eva.waweru@vilcap.com).
About Village Capital
Village Capital is reinventing the system to back the entrepreneurs of the future. Known for its groundbreaking approaches to supporting founders who are building solutions to emergent social, economic, and environmental challenges, VilCap unlocks critical social and financial capital for early-stage startups to maximize business and impact growth.
Since 2009, Village Capital has supported close to 1,800 startups that have raised over USD 7 billion in investment capital. It has made more than 150 investments through its various affiliated funds, including Vilcap Investments, which has invested in 110 peer-selected companies. Additionally, more than 36,000 users actively engage on Abaca, their web app that equips entrepreneurs, ESOs, and capital providers with tools for learning about, assessing suitability, and expanding access to financial capital. Its latest feature, Capital Explorer, helps founders identify the most appropriate funding options for their businesses. Learn more at www.vilcap.com and follow @villagecapital.
About FMO
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. For more information: please visit www.fmo.nl
About RVO
The Netherlands Enterprise Agency (RVO) helps entrepreneurs and organisations invest in, develop, and expand their businesses and projects, both in the Netherlands and abroad. It is a government agency that is part of the Dutch Ministry of Economic Affairs.
RVO supports entrepreneurs, NGOs, knowledge institutes, policymakers, and organisations. It enhances collaboration and strengthens positions through its funding and networks. By sharing its expertise, RVO helps businesses move forward in international markets. For more information: please visit Netherlands Enterprise Agency | RVO.nl
