I&P impact story

Furthering financial inclusion with Teranga Capital

With a population of 17 million and a growing presence as a startup hub, Senegal is poised to develop a strong business ecosystem. However, competition for financing is tough, with Senegal attracting just 6% of private capital entering West Africa.

Teranga Capital is the first impact fund in Senegal and in Gambia. Established in 2016, Teranga deploys venture capital, makes private equity deals, and helps small businesses get investment-ready. It is one of 7 local funds in Investisseurs & Partenaires’ IPDEV2 fund, which supports SGBs in sub-Saharan Africa.

With a fund of $7 million and deal sizes up to $500,000, Terenga’s portfolio ranges from small and mid-sized agri-processors to tech startups. The firm also advises entrepreneurs and business owners about taking on equity partners.

Teranga/Afrikamart

“The nuances between private equity and venture capital are not that sophisticated yet in Senegal,” says Teranga co-founder Olivier Furdelle, “we blend the model because we’ve adapted risk capital to local needs.”

Afrikamart is a digital agri-marketplace that connects smallholder farmers with retailers, hotels and restaurants for a more efficient supply chain and reduced risk. Teranga backed Afrikamart’s $850,000 seed equity round alongside Bamboo Capital’s BLOC Smart Africa fund, Orange Ventures and Launch Africa.

SECAS “La Vivrière” is a woman-led cereal processing company. Teranga is supporting SECAS’ domestic and international expansion, helping with its governance structure and with formalising jobs for its workers.

Furdelle says, “Teranga leverages different pools of capital for its seed-acceleration work versus its core fund. The acceleration initiatives are backed by grants from development finance institutions; its fund is backed by a mix of private investors including through IPDEV2.”

This story is drawn from ‘Taking risks to build an impact ecosystem in West Africa’ in Impact Alpha.