Kenyan businesses exporting to Europe to benefit from Sh28.2bn ‘ESG First Fund’

Nairobi, Kenya, JAN 28 – Kenyan mid-market businesses focused on high exports to Europe are set to benefit from Shs 28.2 billion issued by Indian based Venture Capitalists, Aavishkaar Capital  in partnership with KfW, a  German state-owned investment and development bank.

The Environmental, Social, and Governance (ESG) First Fund focuses on  investing in Africa and Asia with an aim of generating commercially viable financial returns through provision of flexible capital as well as strengthening a positive social impact.

It is general open to all sectors, but focuses on those with high exports towards Europe.

Commenting on behalf of BMZ, Federal Ministry for Economic Cooperation and Development Germany, Anosha Wahidi, said the fund is primarily intended to help SMEs in Africa and Asia to meet the growing demands from European companies

“With our investment of 50 million euros, we want to help set up a fund that demonstrates that increased respect for ESG can be a viable investment and business model.”

“It is important to us that we do not exclude companies in other parts of the world from supply chains towards Europe, but rather enable them to participate in better due diligence management.”

Aavishkaar Group Founder and Chairman, Vineet Rai said the fund underscores its partnership with KFW Group to develop rapidly innovative products with trust and long term impact.

“As we launch this fund we exhort other development finance institutions looking to enhance ESG impact to join us in delivering significant impact and generate attractive returns whilst bringing about a significant positive change in the lives of the people.”

Jan Martin Witte, Director, KFW said the fund aligns with its focus on ecologically-conscious sustainable businesses that bring in financial inclusion and economic development.

“Our focus is to help businesses scale by allowing them to participate in the significant growth of consumer demand for ‘socially-conscious products’ Ashish Patel, Managing Partner, ESG First Fund – Aavishkaar Capital added.