Harambeans Prosperity Initiative: $1 million and experts for African entrepreneurs to thrive in the Pandemic

Africa holds the potential to generate great wealth with its growing population and innovative entrepreneurs. However, having faced the challenge of increasing poverty among its people, the continent now faces a new challenge – an economic downturn and financial crisis brought on by the global pandemic.

Instead of allowing this looming economic crisis, which could see between 70 and 80% of non-venture capital backed start-ups facing closure, to disrupt innovation on the continent, the Harambe Entrepreneur Alliance is continuing to unlock Africa’s potential by driving prosperity. This will be achieved through supporting their network of high impact Harambeans with the Harambeans Prosperity Fund.

The Harambeans Prosperity Fund – formed through the Harambe Entrepreneurship Alliance network of prominent families and corporations – aims to provide $1 million in funding to African networks affected by the economic downturn. This funding will be made available to a group of diverse and impactful African innovators who have been admitted to the Harambe Entrepreneur Alliance. Since 2008, more than 300 Harambeans have developed high impact ventures in Africa with lasting social and economic impact. Collectively, Harambeans have generated over 3000 jobs and raised over $500m from Google Ventures, Chan Zuckerberg Initiative and Alibaba.

Accelerating growth in an economic crisis
Given the widespread impact of the pandemic on the continent’s entrepreneurial ecosystem, African start-ups are finding that their business models have been disrupted, capital markets have frozen and consumer habits are changing – a formula that may result in 50% of Harambean enterprises expecting the financial impact of COVID-19 to become critical within the next three months.
In addition, over 75% of Harambean enterprises have indicated a need to raise up to $100 000 to sustain business activities, as well as a need for coaching and mentoring from investors and operational experts, explains Okendo Lewis-Gayle, Executive Chairman of the Harambe Entrepreneurship Alliance.

“As the pandemic metastasizes into an economic and financial crisis, entrepreneurs throughout Africa’s developing start-up landscape face an unprecedented threat,” says Lewis-Gayle.

The Harambeans Prosperity Fund is a rules-based co-investment vehicle that leverages Harambe’s investment network to increase capital flows to Harambean-led ventures. In response to COVID-19 the Harambeans Prosperity Fund is allocating $1 million to provide low interest loans and equity investments to ventures with sound business models, proven traction and demonstrated adaptability.

The Harambeans Prosperity Fund will make capital available to entrepreneurs who have repositioned their ventures, or had proven business models prior to the pandemic, and are likely to thrive in the new norm but are unable to access capital markets.

The following funding is available:
? $25 000 for applicants who have revenues of at least $5 000 per month over a six-month timeframe within a 12-month period.
? $50 000 for ventures that have raised $250,000 (in debt or equity) within a reasonably recent time period
? $100 000 for enterprises leading a fundraising round of at least $1million (in debt or equity) within a 12-month period.

The funding is open to any entrepreneur within the Harambean network. Entrepreneurs who are not members of the network are invited to apply to become Harambeans at www.harambeans.com/become-a-harambean.

The applicant should demonstrate adaptation to the pandemic, either as part of the response to COVID-19 or undergoing structural changes. More details are available on the Harambeans Prosperity Fund website.

In addition, the fund will also allow qualifying applicants to access a network of mentors, investors and operational experts who will offer coaching. Other Harambean enterprises who have shown adaptability to the current global crisis and who, through the Haramabean Prosperity Fund, will benefit from knowledge transfer sessions with experts on how to transform the crisis into opportunity include Lungisa Matshoba (Yoco), Monique Baars (Fineazy), Oluseun Onigbinde (Budgit), Ugwem Eneyo (Solstice Energy Solutions), Zelani Mboweni (LU?LA app), William Mapharm (Vula), Yasmin Kumi (Africa Foresight Group) and Grant Bridgman (Uliza).

Unlocking wealth through innovation
The fund has already identified the first two recipients – Releaf Group and MAX.NG – who have benefitted from $200 000 in funding.
Releaf Group, co-founded by Harambeans Emmanuel Udotong and Ikenna Nzewi, looks to solve the problem of sourcing quality raw material for Nigerian food factories.

Between 80 and 90% of agricultural supply in Sub-Saharan Africa is made up of smallholder farmers and middlemen. Due to the decentralisation, unreliability and variable quality by farmers and middlemen, factories are left competing for a limited amount of raw material.

Releaf uses new technology to provide raw material access to factories and implements quality control mechanisms. This has resulted in consistent quality, access to 80% more raw material and an improved relationship with farmers.

MAX (Metro Africa Xpress) is an Uber-like moto-taxi company in Nigeria, founded by Harambean Adetayo Bamiduro.
Bamiduro became a Harambean in 2015, while still at MIT. His dream of leveraging technology to make an impact and his strong disposition towards executing ideas, saw Bamiduro turn Nigeria’s public transport challenge into a logistics opportunity. Lagos’s poorly developed public transport system creates a bottleneck for growth in Africa’s most populous country. Harambean Adetayo Bamiduro and his co-founder Chinedu Azodoh decided it was on them to tackle this barrier.

In response to the pandemic, the logistics company has empowered more of its riders to deliver supplies to households and individuals in order to make more cash-flow available during this period. MAX has provided a free delivery platform to verified older citizens who are aged 50 and above.
Lewis-Gayle concludes: “Thanks to the foresight of our philanthropic partners, our co-investment model enables us to leverage the stellar track record of Harambeans with the investment community to unlock as much as $9,000,000 in additional capital for African entrepreneurs at this critical time. I pray that the spotlight of Harambeans Prosperity Fund will embolden investors across Africa and around the world to back entrepreneurs from Cape Town to Cairo.”