From David Onuoja, Abuja
The Financial Sector Deepening Africa (FSD), has launched a new Manager Finance Facility (MFF) to strengthen locally-rooted capital providers and expand financing for small and growing businesses (SGBs) that remain underserved by traditional banks across Africa.
The facility, unveiled in Lagos and Nairobi, will provide flexible, returnable catalytic capital to Alternative Local Capital Providers (ALCPs), emerging fund managers developing innovative models such as revenue-based finance, flexible equity, venture debt, blended finance and local-currency structures.
This, will offer two windows: Piloting Capital to test new models and complete early transactions, and Operational Capital to sustain teams, systems, governance and ESG compliance while managers raise long-term investment capital.
The initiative is launched with backing from FMO, the Dutch entrepreneurial development bank, through the Investing in Young Businesses in Africa (IYBA) programme funded by the European Commission, and the UK Government’s Foreign, Commonwealth and Development Office in Nigeria.
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FSD Africa said the approach builds on its experience of using catalytic capital, technical assistance and ecosystem development to crowd additional public and private capital into underserved markets.
Speaking on the launch, Andrew Shaw, Manager Market Creation Financial Inclusion at FMO, said the Facility targets the structural gap facing SGBs: “Small and growing businesses needed financing that reflected the way they operated and expanded. Supporting locally rooted capital providers could help them build institutional capacity and track records needed to attract larger sources of investment into underserved African markets.”
The Nigeria window is supported by the UK. Temilola Akinrinade, Investment & Capital Markets Lead at FCDO Nigeria, “Unlocking Nigeria’s economic potential requires financing solutions that work for its entrepreneurs and growing businesses.
The UK is proud to support the Nigeria window of the Manager Finance Facility which will strengthen locally rooted capital providers, mobilise further private investment and support Nigeria’s sustainable economic transformation. It forms part of UK’s wider partnership with Nigeria to increase investment, create jobs and deliver mutual growth.”
FSD Africa intends the MFF to operate as a platform for additional catalytic investors to participate in building Africa’s alternative SGB capital ecosystem, with further funding partners to be onboarded as the Facility develops.
Applications to the Facility opened for Nigeria-based ALCPs on 1 September 2026, while applications from other eligible African markets opens on 17 September 2026. The Facility said it is particularly interested in emerging managers developing climate resilience and gender-smart strategies. Successful applicants will progress through assessment of their financing model, proposed use of funds, institutional needs, risk and due diligence before approval and disbursement.
Ultimately, FSD Africa said the MFF is aimed to create a multiplier effect across Africa’s financial markets: stronger locally based capital providers, more investable businesses, increased employment, and more resilient and inclusive economies.
