Fako Capital, a pioneering impact investment fund based in Cameroon, marks a significant milestone in the country’s financial ecosystem. Launched under the auspices of Investisseurs & Partenaires (I&P), this is the eighth fund sponsored by I&P Développement, which has steadily expanded its footprint across Africa to support early-stage businesses. The fund targets investments of up to €500,000 in Cameroonian and Central African small and medium-sized enterprises (SMEs) across various high-impact sectors.
Fako Capital, spearheaded by Vivian Tchatchueng, former Investment Director at I&P, is designed to address two critical barriers faced by SMEs in the region: access to tailored financing for growth and the structural support necessary to thrive.
“We plan to finance around 50 SMEs over the medium term, 80% of which will focus on the financial and social inclusion of women, while creating approximately 1,000 formal jobs for young people,” Tchatchueng stated. The fund aims to deliver not just financial returns but also measurable social impact, aligning with global trends in responsible investing.
I&P, a Paris-headquartered impact investing firm established in 2002, has become a cornerstone of SME development in Sub-Saharan Africa. With six African offices and over two decades of experience, I&P employs a dual strategy of providing catalytic capital and fostering local fund management expertise. Its IPDEV 2 initiative — a €24 million evergreen investment vehicle — anchors funds like Fako Capital by offering initial investments of €1–2 million alongside technical support.
Prévost Kla, Investment Director at I&P, emphasized the importance of local partnerships: “The team led by Vivian has demonstrated its commitment. We hope to create a dynamic that attracts local investors, strengthening the financial ecosystem in Cameroon.”
A Network of Impact Funds Across Africa
Fako Capital joins a growing network of African impact funds nurtured by I&P, including Comoé Capital in Côte d’Ivoire, Zira Capital in Mali, Miarakap in Madagascar, Sinergi Niger in Niger, Sinergi Burkina in Burkina Faso and Teranga Capital in Senegal. These funds collectively aim to bridge the gap for SMEs often overlooked by traditional banks and large institutional investors.
The funds are designed to deliver more than just capital. Through the I&P Acceleration in the Sahel program, businesses gain access to seed funding, expert technical assistance, and capacity-building initiatives. For instance, Lakelle, a Cameroonian textile company supported by Fako Capital, leveraged financing to procure essential equipment and benefited from branding and operational consultancy. “We were able to purchase sewing machines and supplies, while also receiving guidance on improving our brand image,” said Vivianne Sagpin, Operations Manager at Lakelle.
SMEs are the backbone of African economies, yet they face persistent hurdles in accessing finance. Impact funds like Fako Capital seek to address this by blending commercial viability with developmental outcomes. I&P estimates that its initiatives will ultimately support up to 500 SMEs and generate 15,000 jobs across Africa.
Beyond direct financial support, I&P offers a comprehensive toolkit for fund managers, encompassing due diligence processes, financial reporting, and environmental, social, and governance (ESG) metrics. This approach ensures that supported SMEs are investment-ready and can scale sustainably.
By focusing on sectors with high growth potential, Fako Capital aims to foster economic and social development in Cameroon and the Central African region. It hopes to position itself as a leader in the region’s financial ecosystem, encouraging co-investments from African and international partners.
With an initial funding range of €50,000 to €500,000 per SME, the fund is poised to attract enterprises committed to financial inclusion, women’s empowerment, and job creation. As it builds momentum, Fako Capital serves as a testament to the increasing viability of impact investing as a tool for economic transformation in Africa.