FSD Africa has launched the Manager Finance Facility (MFF), a new initiative designed to strengthen Africa’s emerging generation of alternative local capital providers and unlock tailored financing for small and growing businesses across the continent, reports ITREALMS.
The Facility launches with backing from FMO, the Dutch entrepreneurial development bank, and the UK Government’s Foreign, Commonwealth and Development Office (FCDO) Nigeria.
FMO’s contribution is supported through the Investing in Young Businesses in Africa (IYBA) programme, a Team Europe Initiative funded by the European Commission.
Small and growing businesses (SGBs) drive employment and innovation across Africa, yet traditional financial institutions often overlook them due to rigid collateral rules, high transaction costs, and perceived risks. Meanwhile, Alternative Local Capital Providers (ALCPs) developing innovative financing tools face their own funding constraints.
The MFF directly addresses this challenge by deploying flexible, returnable grant capital through Piloting Capital and Operational Capital. Piloting Capital enables ALCPs to test novel models; including revenue-based finance, venture debt, flexible equity, blended finance, and local-currency structures, to build credible track records. Operational Capital provides working capital to support core teams, governance, ESG frameworks, and compliance systems while raising long-term investment capital.
Highlighting the vision behind the initiative, Juliet Munro, Early-Stage Director at FSD Africa, noted that the industry needs to finance the financiers, as locally rooted capital providers need capital themselves to prove their models, build institutions, and develop track records that investors require.
Andrew Shaw, Manager of Market Creation Financial Inclusion at FMO, emphasized that backing locally rooted capital providers with catalytic capital helps promising models establish a track record and become ready for larger pools of investment.
Furthermore, Temilola Akinrinade, Investment & Capital Markets Lead at FCDO Nigeria, expressed pride in supporting the Nigeria window of the facility, noting that it forms part of the UK’s wider partnership with Nigeria to increase investment, create jobs, and deliver mutual growth.
Applications for Nigeria-based ALCPs opened on 1 September 2026, while applications for other eligible African markets opened on 17 September 2026.
Special emphasis is placed on providers integrating climate resilience and gender-smart investment strategies.
Short URLs: goo.gl, mcaf.ee, cli.gs
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