Investment Approach
 Part of AfriCap's wider objective has always been to provide an attractive return for our shareholders whilst fulfilling important development objectives. This meant carefully structuring an investment approach that would ensure that success and a positive social impact became linked. A model similar to that of the Venture Capital Model was devised, allowing AfriCap to offer an integrated investment package and build a reputation as a value enhancer with a hands-on approach.
AfriCap's invests in microfinance and microfinance related organizations that are dedicated to serving those excluded from traditional financial services and committed to commercial viability. AfriCap considers a variety of institutional models and is now expanding the scope of investment to include a wider range of financial services. Areas of intervention will include: micro-insurance, low-income housing, micro-leasing and money transfers.
Being based in Africa allows us to be close to and have an intimate understanding of the markets that we invest in. AfriCap invests across the continent in its entirety, always looking to enter and support the development of new microfinance markets.
Financing: AfriCap employs equity and quasi equity instruments with an aggregate exposure of $1.5 million per investment. Equity stakes range from 15-30%. Because AfriCap seeks equity returns, we only consider pure debt where we can enhance our existing role as an equity investor.
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