Call for applications: HEVA East Africa Growth Fund for creative businesses

The fund is made possible in partnership with the European Commission and the French Development Agency (AFD). It is a loan facility with targeted debt investments to be deployed for a maximum of four years to successful applicants. It is worth between $20 000 and $50 000.

With this fund, applicants will be able to:

• Restructure interrupted supply chains.
• Increase production capacity.
• Diversify offerings.
• Increase market share.
• Increase integration in local and regional value chains.
• Support the transition to low-touch and digital capabilities.
• Take advantage of new opportunities.

"East Africa Growth Fund beneficiaries will also be the recipients of ongoing strategic engagements to synergise with their direct cash-flow investment," HEVA Fund said. "This will include relevant financial modelling, legal, tax, human resource, accounting and cash-flow management support, as well as access to training and international platforms for market access."

This debt facility will be available in several forms for flexibility to several types of business needs:

• Term loans (up to 48 months): This is the standard term loan that is offered for between 1 and two years, with a moratorium of three months before the payment period begins.
• Lease to own: This is for a specific asset the beneficiary would like to acquire for the business, such as a particular machine, equipment, etc. The beneficiary would be able to use the asset while paying for it. Upon completion of payment, ownership is transferred entirely to the beneficiary.
• LPO finance: This enables businesses with pending or possible purchase orders, who do not immediately have the liquid working capital to buy materials or hire needed assistance, to meet the needs of the order. In this short-term facility, financing is advanced for the beneficiary to meet these working capital needs.
• Line-of-credit: Some enterprises have rolling working capital needs: for purchase orders, inventory replenishing, new hires or consultancy requirements, expansion and more. This facility moves a pre-approved amount of financing that an organisation can access at any time to allow them to get these matters sorted out.

Eligibility

The applicants must:

• Be registered and operational in one of the listed countries, and at least 51% of company shareholders must be citizens in any of these countries.
• Be able to demonstrate a resident team (permanent or part-time). The business must have a minimum of one permanent employee.
• Have valid financial statements or audited accounts for a minimum of one year.
• Demonstrate that it has been operating for at least two years.

The business must be in any of the following creative economy value chains:

• Music production and distribution.
• Digital media.
• Events.
• Creative and cultural education.
• Fashion.
• Crafts and handmade items.
• Cultural infrastructure.
• Food and cuisine.
• Decorative home.
• Film, TV and photography.

How to apply

• Read the guidelines here.
• Complete the application form here.

About HEVA

Since 2013, HEVA has invested in more than 20 creative businesses within the fashion, digital content, crafts and decor value chains enabling them to increase their production capacities, launch new product lines, invest in new technology and expand their distribution networks. In 2018, the AFD and HEVA announced a partnership that saw the latter invest 90 million Kenyan shillings ($930 000 at the time) in the East African creative businesses, thus generating new jobs and enhancing vibrancy in the sector.