Our History and Rationale
Investing in entrepreneurs
Mango Fund is an impact investment fund that aims to the support economic development of East Africa by promoting growth of Small and Medium Enterprises (SMEs) that leverage technology to do in-country value addition. Mango Fund assists local entrepreneurs in overcoming growth barriers by providing them with financial and consulting services. The Fund was established in 2011 and currently has two offices in the United States and Uganda.
The missing middle
In developed economies like the USA and Europe, SMEs create 60 percent of employment and generate over 50 percent of GDP. However, in emerging economies, SMEs create only 30 percent of employment and generate only 17 percent of GDP— less than half! (Ayyagari, Beck and Demirgüç-Kunt, World Bank 2003). This difference in the role that SMEs play in the economy is defined as “the missing middle”. The main reason behind this gap is insufficient access to finance: a majority of SMEs are too big to borrow from microfinance institutions, but they are also too small to borrow from the banking sector or private equity firms. The only alternative for an entrepreneur to finance a business is to defer to the informal money lenders who offer short-term loans at predatory interest rates and abusive repayment practices.
We foster social and economic growth though building strong SME sector
This is where Mango Fund steps in: by providing mid-size loans and equity opportunities in a flexible manner, we back growth-oriented entrepreneurs and help them thrive. Our mission is to support local Small and Medium Enterprises sector with financial and business development services. Our purpose is to build a strong private sector that fosters the economic growth and generates skilled employment.