Japan International Cooperation Agency (JICA), Japan’s governmental agency for official development assistance, announced an investment of USD 40 Million into Aavishkaar Capital’s ‘Global Supply Chain Support Fund’ to support enterprises across Asia and Africa to unlock inclusive and sustainable growth.
The decision was announced in a speech by Japanese Prime Minister Shigeru Ishiba, at the “Economic Partnership in Indian Ocean – Africa Forum.” The forum was convened in conjunction to the TICAD 9 (Tokyo International Conference on African Development), which is being held in Yokohama, Japan, throughout the week. The fund is being managed by the Aavishkaar Capital, a leading impact investment group which is headquartered in Mumbai, India.
Utilizing JICA’s upcoming contribution to the Fund, the Aavishkaar Capital as a fund manager provides credits to private corporates operating in Africa, India and other parts of emerging Asia. These investees are involved in a variety of international business supply chains, including those in agriculture, food processing and manufacturing. JICA’s commitment aims to support small and medium-sized enterprises (SMEs) whose businesses have a significant social and environmental impact.
By investing in the Global Supply Chain Support Fund, JICA will help the Aavishkaar Capital expand into the emerging markets of Africa and Asia, after India, thereby contributing to the development of the wider Indian Ocean region and the global supply chain.
The Global Supply Chain Support Fund (GSC Support Fund) set up in partnership with KfW, a German state-owned development bank, and is the 8th Fund of Aavishkaar Capital that aims to invest in emerging corporates across the global south, driving them toward global success through bespoke non-dilutive capital solutions. The fund invests in businesses that operate across global supply chains and in sectors having significant climate and social impact. The GSC Support Fund has already made 8 investments across Asia and Africa.
Speaking at the event, Mikio Hataeda, Senior Vice President, JICA, said, “We are honoured to invest in the Aavishkaar Fund, with which JICA has a long-standing relationship and has achieved significant impact in India. By investing in the fund and entering a new chapter of collaboration with the Aavishkaar Group, we hope to elevate the well-established India-Japan partnership and further strengthen our commitment to impact investment in Africa and Asia.”
Talking about the investment, Vineet Rai, Founder, Aavishkaar Group and Managing Partner, Aavishkaar Capital who also delivered a short speech at TICAD, said, “We are honoured to welcome JICA’s strategic investment in our Global Supply Chain Support Fund targeting the global south. This collaboration builds upon a decade of our relationship and reflects the long-standing tradition of Indo-Japan economic cooperation. Together, we are committed to advancing shared values of sustainable growth and transformative opportunities for SMEs across the African & Asian continent and look forward to a long and an impactful alliance.”
Monu Jain, Partner, Aavishkaar Capital, said, “With JICA’s catalytic support, we aim to scale the Global Supply Chain Support Fund’s reach across Asia and Africa, empowering SMEs with growth capital to build resilient-, climate & social Impact aligned – supply chains that can thrive in global markets.”
The investment by JICA will accelerate Aavishkaar Capital’s vision in supporting ambitious and innovative enterprises to generate livelihoods, create climate impact, and empower communities across emerging markets.
In the Photos:
Vineet Rai, Founder, Aavishkaar Group and Managing Partner, Aavishkaar Capital with Mikio Hataeda, Senior Vice President, JICA
Aavishkaar Group Leaders – Vineet Rai and Arun Diaz and Aavishkaar Capital’s GSC Support Fund Partners- Ashish Patel, Abhishek Mittal & Monu Jain pose with Mikio Hataeda and JICA Leadersship