Transforming emerging markets with the Market Creation Platform
Securing finance is a significant challenge for SMEs in emerging markets. Many promising enterprises face difficulties in obtaining funding due to their small size, lack of a proven track record, or insufficient collateral. This results in certain markets being underserved.
To address these challenges, DGGF – Financing local SMEs and FMO, with support from the Dutch Ministry of Foreign Affairs, introduced the Market Creation Platform (MCP). This initiative aims to dismantle investment barriers and cultivate sustainable financing ecosystems. DGGF offers seed capital and customized support to financial intermediaries, while FMO tackles regulatory obstacles, business support deficiencies, and the scarcity of local capital. Together, they strive to create viable investment opportunities and promote long-term sustainable development.
Building a sustainable future
MCP is dedicated to enhancing the success rate of early-stage enterprises and establishing sustainable investment ecosystems in regions with high needs. By directly addressing barriers, the platform ensures that more businesses can access the necessary financing to grow. By investing in local capacity, developing investment-ready businesses, and mobilizing new sources of capital, we are fostering more inclusive, resilient, and investable markets.
First MCP investment: fostering innovation in the Horn of Africa
The first seed investment of the MCP was directed towards African Renaissance Ventures (ARV), which manages the Horn of Africa Fund I. This venture capital fund supports early-stage SMEs in sectors such as clean-tech, agritech, fintech, healthtech, and logistics across Ethiopia, Uganda, Rwanda, and Tanzania. More information about the investment can be found here. By supporting a first-time fund manager targeting underserved markets, we aim to showcase the viability of venture capital in these regions. A notable investment of ARV is in Emata, a Ugandan fintech company that provides affordable digital loans to farmers, thereby enhancing food security. These investments demonstrate how local innovation can drive sustainable impact and job creation.
