COSEF LLC's Logo
World Map
Subsaharan Africa

COSEF LLC COSEF is the first locally domiciled impact investment company in Uganda and established by Masindi Community Foundation (MCF) that provides financing and technical assistance to SMEs with high growth potential and social impact in partnership with MCF and local angel investors as co-investors, business advisors and mentors.

Accelerator; Investment Fund; Venture Capital

OVERVIEW

Description

COSEF is the first locally domiciled impact investment company in Uganda and established by Masindi Community Foundation (MCF) that provides financing and technical assistance to SMEs with high growth potential and social impact in partnership with MCF and local angel investors as co-investors, business advisors and mentors.

UN report 2003 estimates that there are over 1.5 million SMEs in Uganda. However, 78% of these SMEs show business failure within the first 2 years due to 2 main problems i.e. lack of financing and business development services.

These small businesses with high growth prospect and good return on investments are too big to access financing and business development services from microfinance institutions and also cannot access such services from formal financial institutions because of their risky nature due to lack of formal collaterals, resulting into a ‘missing middle’.

COSEF taps into this great business opportunity by providing much needed financing, comprehensive Business Development Services (BDS) and Environmental, Social and Governance (ESG) improvements to enable the enterprises grow sustainably, create employment for the increasing number of unemployed youth and rural low income people in the country and also contribute generously to the country’s GDP, while providing superior financial returns to investors.

Due to lack formal collaterals to secure debt investments, SMEs in Uganda require mezzanine and equity financing.

Through these instruments, COSEF provides financing to high growth potential and social impact SMEs with promising Cashflow statements.

COSEF invests in companies operating within 4 key sectors with high demand for products and services. The sectors are; Agro-processing, Small scale manufacturing, Energy and Financial technology. Key investment criteria are; Company should have existed for atleast 1 year, employing atleast 5 people, with promising cash flows and in the formal sector; Financing request should range from $50,000 – $1,000,000, structured as either Equity or Mezzanine debt; Create new and quality jobs for the youth, women and other low income people; Provide quality and affordable product and services to improve livelihoods of low income customers; Clear growth potential and led by local experienced entrepreneurs; Company should not have any negative effects on the environment.

COSEF is managed by a local professional investing team consisting of Advisors and Board of Directors. The team has over 100 years combined experience and expertise in the areas of business development, impact and socially responsible investing and appropriate fund management practices, having managed combined assets of over $850m of various investment firms.

FUNDING TYPES AND CRITERIA

Provides direct investment

INVESTMENT RANGE:

$50,000 - $1,000,000

FUND SIZE:

$10,000,000

INTERESTED IN THESE SECTORS

Agriculture; Energy; Enterprise Development, SME

Stages

  • 4) Early Customer Traction, Revenue
  • 5) Starting to See Strong Revenue Traction

social vs. financial return preference

  • 3: Balanced

Types of entities

  • For Profit
  • Non-Profit

providing funding for these regions

  • Subsaharan Africa

funding types

  • Debt
  • Rev Share / Quasi Equity
  • Convertible
  • Equity

DEALS