We are excited to announce the launch of the Impact Measurement initiative for Verdant Capital Hybrid Fund’s (VCHF) investees, supported by technical assistance from KfW Development Bank
Verdant Capital Hybrid Fund is investing in inclusive financial institutions (“IFIs”) on a pan-African basis, particularly IFIs supporting micro and small enterprises, and focused on investments in growth stage technology-enabled IFIs.
KfW, on behalf of The German Federal Ministry for Economic Cooperation and Development (“BMZ”) has provided a technical assistance facility (“TAF”) in relation to the investment of KfW in VCHF.
The TAF is managed and implemented by Verdant Capital and has a mandate to improve the performance and sustainability of existing and potential IFI investees of the Fund across key aspects (e,g,. operational, financial, environmental, and social performance) through targeted, project-focused assistance.
VCHF is committed to achieving both commercial returns and developmental impact by supporting IFIs, which in turn support SMEs and micro-entrepreneurs, ultimately fostering job creation and livelihoods, and promoting the United Nations Sustainable Development Goal 8.
VCHF will partner with 60 Decibels to deliver ongoing impact measurement, management, and strategic guidance for its portfolio companies. VCHF currently has five portfolio companies, including Mogo Kenya, Watu Uganda, LOLC subsidiaries in Africa, Zeepay, and UsPlus. The fund aims to continue to expand its portfolio until the end of 2027.
This initiative will enable VCHF and its investees to effectively assess the socio-economic impact of their investments. It will also support the development of a comprehensive Impact Management Framework, guiding VCHF’s impact screening, value creation goals, assessments, and reporting processes.
The program will measure the creation of jobs and livelihoods generated through VCHF’s investments and Technical Assistance (TA), providing robust, data-driven evidence of progress toward its primary impact objective. Additionally, it will help capture and validate outcomes related to secondary impact goals, highlighting positive social and environmental changes driven by the fund’s activities.