IIF, Kuramu seek PFAs’ collaboration on impact fund

The Impact Investors Foundation (IIF) in alliance with Kuramo Capital has called on the pension fund administrators (PFAs) and stakeholders in the industry to foster collaboration and explore innovative ways to channel local capital toward the Wholesale Impact Investment Fund (WIIF).

They said this at the roundtable to engage PFAs and other stakeholders in WIIF organised by the group. They said the initiative would address the critical financing gap micro, small and medium enterprises (MSMEs) face and drive long-term economic growth, job creation as well as significant social impact.

The fund is an initiative designed to crystalise Nigeria’s thriving impact investment ecosystem and drive long-term economic growth. Aligned with Nigeria’s National Development Plan 2021 to 2025, WIIF provides PFAs with a unique opportunity to invest in an asset class that offers attractive financial returns and aligns with Nigeria’s broader development priorities.

Speaking at the programme, the Chairman of IIF, Afolabi Oladele, said the Federal Government and the National Advisory Board of Impact Investment (NABII) plan to establish a N1 billion fund to increase the WIIF. Oladele put the first tranche of the Nigerian WIIF at $100 million, of which the Federal Government had committed $50 million.

According to him, the government will ultimately invest up to 70 per cent while the private sector will contribute 30 per cent to the fund.The IIF chairman stressed 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 alternative funding for development to keep a 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 a credible track record.

“Kuramo is not only a known name in the Nigerian investment space but stands to take credit with the development of private equity in Nigeria, “he said.