February 27, 2025 – The Entrepreneurial Development Bank (FMO), Village Capital, and the Netherlands Enterprise Agency (RVO) have launched the Africa Ecosystem Catalysts Facility (AECF), a USD 4 million initiative to bolster early-stage companies in Ghana, Nigeria, and Tanzania that deliver significant social and economic impact. The facility introduces an innovative model by partnering with locally-led Entrepreneur Support Organizations (ESOs) to source, evaluate, and invest in high-potential businesses, aiming to bridge persistent funding gaps in these markets.
The AECF targets companies driving job creation and addressing pressing issues such as economic mobility, financial inclusion, the future of work, and climate resilience. Early-stage firms in these countries often face limited funding options, heightened perceived risks, and structural obstacles that hinder growth. By collaborating with up to two ESOs per market, the facility leverages local expertise to identify promising ventures and provide a structured capital pathway, guiding them from early revenue stages to scalability and product-market fit.
This approach seeks to unlock capital and enhance the role of ESOs in the investment ecosystem. Historically underutilized, ESOs possess critical insights into local challenges and founder potential, yet their expertise has been overlooked by traditional investors. The AECF aims to test how this capital pathway impacts investee companies, to secure larger funding rounds and foster sustainable entrepreneurial ecosystems.
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Kars Gerrits, Coordinator of RVO’s Orange Corners Innovation Fund (OCIF), said: “RVO, and more specifically the Orange Corners Innovation Fund (OCIF) program, is excited to embark on this new strategic partnership with FMO and Village Capital. This collaboration marks an exciting step forward, as both RVO and FMO, as Dutch development organizations, are joining forces to address critical funding gaps in the entrepreneurial ecosystems in these African countries. By building on the foundation of OCIF, we remain committed to fostering enterprise growth, with a specific focus on youth and women entrepreneurs.”
Susan Nakami, Africa Region Lead at Village Capital, emphasized the partnership’s novelty: “This partnership is the first of its kind between FMO and RVO, and it represents an exciting step forward in our collective effort to close the funding gap in these countries. By leveraging insights from each of the three partners, we are drawing from existing programs and partnerships that are already designed to unlock capital in these markets. Village Capital has been working with locally-led ESOs for nearly a decade, and we’ve seen firsthand how often investors overlook their expertise. Through this partnership, we’re not just unlocking crucial capital, but also strengthening local ecosystems and creating a more sustainable pathway for high-potential companies to drive economic growth and sustainability in the region.”
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Claire Nyambori, Technical Assistance Officer at FMO, added: “Through FMO’s 2030 strategy focused on market creation, we aim to transform early-stage companies into viable, investment-ready projects. This partnership allows us to leverage our combined strengths and work directly with locally-led ESOs and businesses to create impact. We are excited to work alongside RVO and Village Capital to drive meaningful market growth and support businesses that will be central to the economic development of the region.”
The initiative reflects a concerted effort to catalyze economic progress in Ghana, Nigeria, and Tanzania, harnessing local knowledge to empower businesses poised to shape the region’s future.
