Mastercard Foundation to Back MSMEs Via Capital Connect Africa Deal
TLDR
- The Mastercard Foundation Africa Growth Fund has partnered with Capital Connect Africa (CCA) to expand financing opportunities for Africa’s micro, small, and medium enterprises
- The collaboration aims to tackle capital access challenges that continue to hinder business growth and job creation across the continent
- The fund-of-funds, led by Mennonite Economic Development Associates (MEDA), supports African investment vehicles focused on early-stage, growth-oriented businesses
The Mastercard Foundation Africa Growth Fund has partnered with Capital Connect Africa (CCA) to expand financing opportunities for Africa’s micro, small, and medium enterprises (MSMEs). The collaboration aims to tackle capital access challenges that continue to hinder business growth and job creation across the continent.
The fund-of-funds, led by Mennonite Economic Development Associates (MEDA), supports African investment vehicles focused on early-stage, growth-oriented businesses. CCA’s platform will complement this by offering MSMEs access to investor databases, business planning support, tailored advice, and funding matchmaking tools.
The partnership enables the fund to integrate its pipeline of investable SMEs into the Capital Connect platform, increasing deal flow and broadening investor reach. MEDA President and CEO Dr. Dorothy Nyambi said the alliance aims to fuel local employment by empowering often-overlooked businesses, particularly women- and youth-led enterprises.
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Key Takeaways
Despite contributing over 80% of jobs in many African countries, MSMEs face a $330 billion financing gap, according to the IFC. Traditional investors often overlook these businesses due to perceived risk, lack of collateral, or limited scale. The Mastercard Foundation’s fund-of-funds approach targets this disconnect by channeling institutional capital into local investment funds focused on underserved segments. By collaborating with platforms like CCA, these efforts are extending beyond finance to capacity-building, making MSMEs more investable. The emphasis on women and youth-led enterprises aligns with broader inclusion goals across Africa’s economic development agenda. CCA’s digital tools enhance visibility and streamline engagement between founders and funders. Such partnerships signal a shift toward ecosystem-level solutions that combine capital, advisory, and access. With millions of jobs needed annually to absorb Africa’s young workforce, unlocking MSME potential will remain central to sustainable growth strategies.
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