FSD Africa has launched the Manager Finance Facility (MFF) to strengthen local capital providers and unlock financing for Africa’s small and growing businesses (SGBs). Backed by FMO (the Dutch entrepreneurial development bank via the European Commission’s IYBA programme) and the UK’s FCDO Nigeria, the MFF aims to bridge the financing gap for high-potential enterprises across the continent.
While SGBs drive African employment and innovation, standard banking requirements often exclude them. Emerging Alternative Local Capital Providers (ALCPs) offer tailored funding models—such as revenue-based finance, venture debt, and local-currency structures—but often lack capital themselves. The MFF provides catalytic, returnable grant capital to help ALCPs prove their models, build track records, scale operations, and attract future institutional investment. Additional funding partners are expected to join the initiative as it expands.
Says Juliet Munro (Early-Stage Director, FSD Africa):
We need to finance the financiers. Across Africa, we are seeing a new generation of locally rooted capital providers developing innovative ways of financing businesses that traditional financial institutions are not reaching. But these providers need capital themselves to prove their models, build their institutions and develop the track records that investors require. The MFF is designed to bridge this gap – helping promising providers move from experimentation towards scale, channelling more – and more appropriate – capital to African businesses in the longer-term
Building Africa’s next generation of locally based capital providers
The MFF will provide support through two principal forms of catalytic capital, both designed as flexible, returnable capital rather than conventional grants:
Piloting Capital will enable ALCPs to test innovative financing models, execute early transactions, demonstrate commercial viability and build the investment track records required to attract larger pools of capital.
Operational Capital will provide working capital to support core teams, systems, governance and compliance while ALCPs raise investment capital and move towards financially sustainable operations.
Alongside capital, providers supported through the Facility will have access to FSD Africa’s wider capacity-strengthening and peer-learning initiatives, covering aspects such as governance, ESG, impact measurement, valuation and fundraising. Data and knowledge generated through the Facility will also contribute to wider market intelligence and evidence about this important financing sector.
The ambition therefore extends beyond financing individual ALCPs. The Facility seeks to demonstrate that a diverse generation of African-led providers can develop into a credible and investable asset class, capable of attracting catalytic, private and ultimately institutional capital.
Mobilising capital alongside FCDO Nigeria and FMO
The MFF’s launch brings together FSD Africa, FMO, and FCDO Nigeria around a shared objective of strengthening the institutions capable of deploying capital to underserved African businesses.
Andrew Shaw (Manager Market Creation Financial Inclusion, FMO) says:
Africa’s small and growing businesses need financing solutions that reflect how they operate and grow. By backing locally rooted capital providers with catalytic capital, the Manager Finance Facility will help promising models establish a track record, strengthen their institutions and become ready for larger pools of investment. This is how we can build a stronger pipeline of investable businesses and mobilise more private and institutional capital into underserved African markets
Temilola Akinrinade (Investment & Capital Markets Lead, FCDO Nigeria and delivered through the British High Commission in Nigeria) weighs in:
Unlocking Nigeria’s economic potential requires financing solutions that work for its entrepreneurs and growing businesses. The UK is proud to support the Nigeria window of the Manager Finance Facility which will strengthen locally rooted capital providers, mobilise further private investment and support Nigeria’s sustainable economic transformation. It forms part of UK’s wider partnership with Nigeria to increase investment, create jobs and deliver mutual growth
FSD Africa intends the MFF to operate as a platform through which additional catalytic investors can participate in building Africa’s alternative SGB capital ecosystem. Further funding partners will be onboarded and announced as the Facility develops.
This approach builds on FSD Africa’s experience of using catalytic capital, technical assistance and ecosystem development to test financing models, strengthen local investment capability and crowd additional public, private and development capital into underserved markets.
Applications open to Alternative Local Capital Providers
Applications to the MFF opened for Nigeria-based ALCPs on 1 September 2026. Applications from other eligible African markets opens on 17 September 2026.
The Facility is particularly interested in emerging ALCPs developing innovative investment models, including approaches incorporating climate resilience and gender-smart strategies.
Successful applicants will progress through an assessment process covering their financing model, proposed use of MFF support, institutional needs, risk assessment and due diligence before approval, contracting and disbursement.
Ultimately, the MFF aims to create a multiplier effect across Africa’s financial markets: stronger, locally based capital providers, more investable businesses, increased employment, and more resilient and inclusive economies.