HEVA has partnered with the European Commission and the Agence Française de Développement (AFD) to launch a KSh 41 million growth funds for Creatives in Kenya, Uganda, Tanzania, and Ethiopia. The fund will provide debt financing for creative businesses in restructure interrupted supply chains, diversify their offerings, boost production, increase market and transition to low touch and digital capabilities.
Last year, the fund announced a Ksh 106 million investment for the creative sector.
The HEVA fund will invest between Ksh 2.1 million to Ksh 5.4 million for a maximum of four years in creative businesses aiming to build the youth’s contribution towards the regional economy through the creative industry. Further, the fund will also help creative enterprises to find new growth opportunities growth as economies recover from the pandemic.
“We are looking forward to providing this much needed flexible, patient and cost-effective financing, to support our sector in regaining its dynamism, through the strengthening of our supply chains, the introduction of new products and services through innovation and digitization,” says Wakiuru Njuguna, a Partner and Investment Manager at HEVA Fund.
The fund will offer debt investment in various forms depending on the nature of the business. Businesses will access term loans offered for between 12-48 months, with a three-month moratorium before payments begin. Creatives will also access the funding in the form of LPO financing for up to 80% of a purchase order, Line of credit, and Lease to own for assets.
Businesses eligible for the debt investment have to be registered in the region and have at least 51% local shareholding. The businesses also need to have at least one resident permanent employee and have financial statements or audited accounts for at least a year. Eligibility requirements also require creative interested companies in the funds to have operated for at least two years.
Applications for the HEVA fund opened on September 1 and will close on October 19.
READ ALSO: Safaricom’s Spark Fund Dedicates Ksh 540m to Grow Local Startups
