Capital Commitment to support Early-Stage Businesses in East African Communities
Monday, April 7, 2014
JPMorgan Chase and the UK Department for International Development will kick start promising businesses in East Africa through a new joint investment in Novastar Ventures.
The new $5 million investment by JPMorgan Chase will be matched by an additional $15 million from DFID as part of its first ever Impact Investment Fund. Launched in 2013, the fund is managed by the CDC, the UK’s own Development Finance Institution.
The investment will develop and grow early-stage businesses that bring the most basic human needs to some of the poorest communities in East Africa, such as healthcare, energy, housing, education and sanitation. The announcement follows Novastar’s recent investment in Bridge International Academies, which provides affordable, primary education to low-income populations. Since 2009, Bridge has built more than 250 schools in Kenya and has hired over 3,000 employees from some of Kenya’s poorest communities.