HEVA FUND is Africa’s first creative economy finance and investment catalyst, set up to tap into the powerful potential of this sector in East Africa.
HEVA is launching the East Africa Growth Fund to invest in creative businesses in the 5 East African countries: Kenya, Uganda, Rwanda, Tanzania, and Ethiopia. This facility is designed to provide financing for businesses to: restructure interrupted supply chains; increase production capacity; diversify offerings; increase market share; increase integration in local and regional value-chains; support the transition to low-touch and digital capabilities, and take advantage of new opportunities.
This fund is a loan facility featuring targeted debt investments to be deployed for a maximum of four (4) years in each business which makes a successful application. Businesses can apply for a minimum of USD 20,000 and a maximum of USD 50,000. This debt facility will be available in several forms for flexibility to several types of business needs:
- Term loans (up to 48 months): This is the normal term loan that is offered for 12-48 months, with a moratorium of 3 months before the payment period begins.
- Lease to Own: This is for a specific asset the beneficiary would like to acquire for the business, such as a particular machine, equipment etc. The beneficiary would be able to use the asset while paying for it. Upon completion of payment ownership is transferred fully to the beneficiary.
- LPO Finance: This enables businesses with pending or possible purchase orders, who do not immediately have the liquid working capital to buy materials or hire needed assistance, to meet the needs of the order. In this short term facility, financing is advanced for the beneficiary to meet these working capital needs.
- Line-of-Credit: Some enterprises have rolling working capital needs: for purchase orders, inventory replenishing, new hires or consultancy requirements, expansion and more. This facility moves a pre-approved amount of financing that an organisation can access at any time to allow them to get these matters sorted out.
Key requirements for each application are:
- Your business must be registered and operational in one of the listed countries: Kenya, Uganda, Rwanda, Tanzania, and Ethiopia. At least 51% of company shareholders must be citizens in any of these countries.
- Your business must be able to demonstrate a resident team (permanent or part-time). The business must have a minimum of one (1) permanent employee.
- You must have valid financial statements or audited accounts for a minimum of one (1) year.
- Your business must demonstrate that it has been operating for at least two (2) years.
- Your enterprise must be in any of the 10 creative economy value chains listed HERE
Get more details HERE