NAIROBI, Kenya, Oct 29 – Kenafric Group has launched a Sh1.3 billion fund to invest in African businesses making consumer products, with individual investments ranging from Sh13 million to Sh260 million.

The fund, known as Kenafric Ventures, will target businesses in food and beverages, beauty and personal care, and retail that have established demand for their products and are looking to expand.

Besides providing money, the fund will give selected businesses access to Kenafric’s manufacturing and distribution networks to help them get their products into shops and reach more customers across Africa.

Kenafric Ventures will be managed by S2E Africa, with support from FSD Africa.

Kenafric Group Chief Executive Mikul Shah said the company would use its experience in manufacturing and distributing consumer goods to help smaller businesses expand.

“Building a great product is only the beginning. We have spent nearly four decades learning how to get a product from a factory in Nairobi onto shelves in shops across East Africa,” Shah said.

He added that Kenafric’s experience could help young businesses grow alongside the funding they receive.

S2E Africa founder and Chief Executive Pulkit Srivastava said partnerships with established companies could help businesses access manufacturing facilities, distribution channels and new markets.

“For consumer founders, the right corporate partner brings capabilities that are hard to replicate through capital alone,” Srivastava said.

He said partnerships could extend from funding to distribution, manufacturing, expansion into new markets and, potentially, future acquisitions.

FSD Africa Director of Early Stage Finance Juliet Munro said the fund was intended to encourage more companies to invest in smaller businesses.

“Corporate capital in Africa is abundant, but very little of it reaches startups,” Munro said.

She said corporate investment could provide both financing and practical business support to help growing companies expand