The UK Government’s Foreign Commonwealth and Development Office (FCDO) Nigeria and FMO, the Dutch entrepreneurial development bank, have partnered to launch the Manager Finance Facility (MFF), an initiative aimed at strengthening Africa’s emerging generation of alternative local capital providers. This will help unlock more suitable financing for small and growing businesses (SGBs) across the continent. The MFF is designed to address the financing gap faced by SGBs, which are critical engines of employment, innovation, and sustainable economic development in Africa.
FMO’s contribution to the MFF is supported through the Investing in Young Businesses in Africa (IYBA) programme, a Team Europe Initiative funded by the European Commission. The programme aims to strengthen market creation efforts and improve access to finance for young and early-stage businesses across key African countries. Additional funding partners are expected to join the Facility as it grows. The MFF brings together FSD Africa, FMO, and FCDO Nigeria around a shared objective of strengthening institutions capable of deploying capital to underserved African businesses.
According to Andrew Shaw, Manager Market Creation Financial Inclusion at FMO, Africa’s small and growing businesses need financing solutions that reflect how they operate and grow. The MFF will help locally rooted capital providers establish a track record, strengthen their institutions, and become ready for larger pools of investment. This will build a stronger pipeline of investable businesses and mobilize more private and institutional capital into underserved African markets.
Temilola Akinrinade, Investment & Capital Markets Lead at FCDO Nigeria, emphasized that 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 MFF, which will strengthen locally rooted capital providers, mobilize further private investment, and support Nigeria’s sustainable economic transformation.
Juliet Munro, Early-Stage Director at FSD Africa, noted that emerging Alternative Local Capital Providers (ALCPs) are developing innovative ways of financing businesses that traditional financial institutions are not reaching. However, 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.
The MFF will provide support through two principal forms of catalytic capital: Piloting Capital and Operational Capital. Piloting Capital will enable ALCPs to test innovative financing models, execute early transactions, demonstrate commercial viability, and build investment track records. 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.
Applications to the MFF opened for Nigeria-based ALCPs on 1 September 2026 and for other eligible African markets on 17 September 2026. 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. The MFF aims to create a multiplier effect across Africa’s financial markets, leading to stronger, locally based capital providers, more investable businesses, increased employment, and more resilient and inclusive economies.
Key points
- The Manager Finance Facility aims to strengthen Africa’s emerging generation of alternative local capital providers.
- The MFF will provide catalytic, returnable grant capital to ALCPs to test and validate innovative financing models.
- Applications to the MFF are open for Nigeria-based and other eligible African markets.
