APPLICATION DEADLINE: JUNE 30TH, 2020
Vital Capital has launched a new debt facility providing loans to promising businesses in sub-Saharan Africa to help them get through the coronavirus pandemic. The Vital Impact Relief Facility will dedicate US$ 10 million, offering firms immediate access to capital to weather the economic consequences of the virus while building a bridge to realizing their visions of becoming prosperous companies that can benefit millions of Africans.
With foreign direct investment globally expected to fall by 30%-40% as a result of COVID-19, the potential economic crisis facing Africa is severe and companies offering essential services in the developing world are among the most vulnerable to the coming financial shocks. With millions of people’s livelihoods disrupted with a disproportionate impact on the poor, it’s a situation that demands bold and immediate action. This is why we have announced an emergency debt facility to help such companies continue to offer their critical services and get them through the coronavirus pandemic.
We are prepared to double down on our impact approach, seeking to help companies continue to deliver essential products, services and infrastructure that provide decent and quality jobs for the population.
Criteria for business
The Vital Impact Relief Facility is offering debt for companies that meet the following criteria:
Geography – We are initially launching in Kenya and Uganda. In the coming weeks and months, we will expand into Cote d’Ivoire, DRC, Senegal, Angola and Ghana.
Sectors – We will primarily target companies active in our strategic sectors, such as healthcare, agro-industry and processing, sustainable infrastructure and education.
Loan size – Between US $800,000 to $1.2 million.
Company revenues – Most businesses with an EBITDA above $1.5 million will qualify. Moreover, as this facility is intended to support businesses that would have grown regardless this global crisis, we require that companies demonstrate year on year EBITDA growth for the last three fiscal years.
Impact – At the core of every investment and decision we make at Vital is our impact mission. We utilize an outcomes-based approach, seeking to invest in companies with products or services that improve economic, personal and social well-being for low to middle-income communities in sub-Saharan Africa. See Our Impact page for more on our impact criteria.
ESG – To Vital, being a responsible investor is a pre-condition for being an impact investor. Vital’s ESG management systems are therefore comprehensive and guided by the IFC’s sustainability framework and standards. ESG factors are part of our decision making and investment monitoring processes throughout the entire investment cycle.
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