The Innovative Finance Lab has announced the selection of Kuramo Capital Management as the fund manager for the Enterprise Financing Facility (EFF), marking a significant milestone in the evolution of capital access for Ethiopian SMEs and startups. Kuramo has onboarded Addis Alemayehu and Hilina Resom from Kazana Fund, as local general partners in the fund. 

The Innovative Finance Lab was set up by the National Bank of Ethiopia (NBE) in partnership with the United Nations Development Program (UNDP) in 2022 to test, innovate and grow a new set of services, products and inclusive instruments that will unlock new avenues of financing for the rapidly growing MSMEs sector in Ethiopia.  

The EFF is a groundbreaking $100 million blended finance facility designed to revolutionize the funding landscape for SMEs and startups in Ethiopia. By combining direct investments with Fund of Funds (FOF) operations, the EFF aims to attract a diverse range of investors, thereby expanding the fund management pool and capacity within Ethiopia.

Kuramo Capital will oversee the establishment and management of the fund as a general partner, with plans to finalize its setup by the first half of 2025. In parallel, Kuramo will focus on mobilizing and securing the first close of the fund within the same year.

The strategy includes catalyzing commercial capital to fast-growing businesses with a focus on Small and Mid-sized Enterprises; Utilizing a multi-asset class approach to investing that includes Fund of Funds; and direct and co-investments alongside current and new managers.

Founded by indigenous African investment professionals, Kuramo has nearly $500M in AuM across 6 investment vehicles; Combined experience of 150+ years from global leading institutions; and has anchored over 15 PE funds and supported 21 PE funds that have raised over $3 billion.