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African Startup Funding Tracker

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Oxfam Novib & Goodwell Launch USD 21.7 M Pepea Fund
Oxfam Novib & Goodwell Launch USD 21.7 M Pepea Fund

Impact investor Goodwell Investments and Oxfam Novib, a Dutch foundation and Oxfam International affiliate, have set up Pepea, a €20 million (USD 21.7 M) fund, to provide financing to early-stage startups in Kenya, Uganda, and Ethiopia. The fund, created with the backing of Oxfam Novib Impact Investments, will provide venture debt with a focus on mezzanine finance, which is a debt that can be turned into equity.

Pepea will target early-stage businesses that have been in existence for one to five years, and are generating revenues but yet to raise capital. According to Goodwell Investments, part of the support to startups will include ensuring that they have the right ‘structures and systems’ in place, to help them prepare and raise their first rounds. The fund will invest in businesses in sustainable agriculture, energy, clean mobility, logistics, and waste management sectors, which produce basic goods and services that represent a huge proportion of household spending for lower-income communities.

The fund will finance startups in Kenya, Uganda, and Ethiopia, markets where Oxfam, and Goodwell have a presence. Development organization Oxfam runs an SME incubation program in the three markets, while Goodwell’s funds are active in both Uganda and Kenya. The fund will provide an initial check of between USD 100 K and USD 500 K and follow-on investments of up to USD 1 M, from Goodwell’s funds.