Our investment philosophy
Mango Fun, an impact investment fund, delivers financial and consulting services to Small and Medium Enterprises (SMEs) in East Africa. We assist our clients with scaling up their operations by supporting them in introducing new production technologies, launching new products, expanding to new markets, diversifying their marketing and distributions strategies, and by optimizing business process management.
International Finance Corporation estimates that 84 percent of Small and Medium Enterprises in Sub-Saharan Africa have unmet capital needs. This is due the banking sector’s inability to adapt its commercial model to the needs of small and medium businesses in low-income countries. The first reason is that banks often have rigid collateral requirements – this means that they are giving loans only to businesses that can deliver land or buildings as a security. Mango Fund tackles this problem by employing a flexible approach to collaterals – we do accept other forms of collateral, such as manufacturing equipment, inventory and others.
The second reason is that the banking sector fails to standardize risk evaluation approach, commercial models and deliver products adequate for small and medium businesses in low-income countries. In order to address specific needs of SMEs in emerging economics Mango Fund developed an innovative approach to due diligence process. An intensive four-week long investigation gives us a deep understanding of our potential clients and the challenges they face. Our in-depth business analysis allows us to offer tailored investment solutions for a variety of situations.
Mango Fund assists its potential clients from the very moment they approach us: throughout the application period, during the procurement process, and with consulting services until the investment is fully retired. Mango Fund finances purchases of both assets and working capital depending on the specific needs of our potential clients.
Many SMEs in emerging economies face growth bottlenecks due to a limited access to business loans opportunities. Mango Fund addresses this need by identifying good businesses and by providing them with investments, in the form of loans and equity, ranging between $5,000 and $50,000.
Mango Fund identifies and backs experienced entrepreneurs who perform value addition activities and use technology to provide skilled employment. A majority of our clients operates in technical farming, agro-processing and manufacturing. Since these sectors offer the highest long-term growth potential and the strongest job creation perspectives, they are crucial for the future of the East African economy.
Our experience in operating in challenging and uncertain economic environment and a disciplined due diligence process let us strike an appropriate balance between taking risk and generating returns.
In addition to financial services Mango Fund assists its clients with business consulting services throughout the investment period. We are ready to support our clients in re-engineering key business processes in order to make sure that they will meet their growth and expansion goals.
Our consulting services package includes:
• Process management
• Strategic implementation
• Financial management
• Human Resource development.