African Alliance, Tshikululu joins forces to provide investment offering for Africa

In efforts to drive investment and support for Sustainable Development Goals in Africa, sub-Saharan African fund managers African Alliance Asset Management and Tshikululu Social Investments have partnered to create an innovative investment offering. The collaboration aims to provide a platform for global investors to channel their funds into impactful sectors such as financial inclusion, infrastructure, and clean energy across the continent. The initiative, named DriveFKFan, marks a significant step towards attracting commercial fund managers to invest in Africa and bridge the funding gap required for development. Sibonakaliso Mavuka, Manager of Special Projects at Tshikululu Social Investments, provided insights into the vision and impact of DriveFKFan during a recent interview on CNBC Africa. The key theme of the partnership revolves around promoting impact investing, where financial returns are pursued alongside social and environmental impact. By focusing on sectors that require substantial capital infusion, such as financial inclusion, infrastructure, and clean energy, the collaboration aims to address unique challenges faced by African nations. With an initial fundraising target of $25 million growing to $50 million, the investment will be strategically deployed in Northern and Eastern Africa regions, targeting projects that align with the partnership's impact goals. One of the key points highlighted in the interview was the positive reception received from investors in the Northern regions and Europe. The emphasis on achieving both financial returns and social impact has garnered significant interest in the impact investment space. While the focus initially remains on European investors, the partnership is open to engaging with American investors as well, expanding the potential reach of impact-oriented funding in Africa. Another key aspect discussed was the project sizes and selection criteria for investment. The partnership aims to target projects ranging between two and five million dollars, focusing on companies with a track record in the targeted sectors. By prioritizing entities with a proven delivery history and sound financials, the collaboration seeks to minimize risks associated with investment in Africa and ensure the effective implementation of funded projects. Addressing the challenge of project planning and implementation, Mavuka emphasized the importance of working with established companies that are looking to expand their social impact and market reach. By focusing on entities with existing operations and growth potential, the partnership aims to streamline the investment process and facilitate impactful outcomes in line with their sustainability goals. In conclusion, the partnership between African Alliance Asset Management and Tshikululu Social Investments represents a significant step towards promoting impact investment and sustainable development in Africa. By leveraging the DriveFKFan platform to attract global investors and focus on critical sectors, the collaboration aims to drive positive change and foster economic growth across the continent. With a clear commitment to financial returns and social impact, the initiative holds promise for creating lasting benefits for both investors and local communities in Africa.