Accelerating Structural Transformation in Malawi

Venture Capital
Facility (VCF)
1.0 INTRODUCTION
EDF’s Venture Capital Facility (VCF) exists to provide
strategic equity investments in key and strategic
companies and sectors aimed at promoting trade
(cross border trade/Exports) and infrastructure
development. This involves provision of capital to
fund development stage of projects, expansions or
buy-outs of existing ventures. The benefits of this
facility include:
• Differentiated, broad and unique focus to fill the
equity gap in intra-Malawian trade and export
development/manufacturing value chain
• This has the benefit of increasing the share of equity
instruments in the funding mix in the country.
• The ability to secure highly technical and financial
expertise and capacity for the investees.
2.0 ELIGIBLE VENTURES 3.0 PRODUCT FEATURES
• Small and medium enterprises (SMEs); emerging EDFs participation in venture capital may follow any of
corporates and mature businesses the forms such as equity and quasi equity instruments.
• Growth, buy-out (in partnership with strategic
investors). 4.0 INVESTMENT PROCESS

Venture Capital Facility (VCF)

1
Injection of Equity Capital

EDF VENTURE
Exit from venture upon success 3

INITIAL DETAILED DUE DEAL

SCREENING REVIEW DILIGENCE CLOSE

Determination Evidence of Negotiations,

Assess fit with business agreements &
of deal
VCF Criteria potential Deal Close
parameters
Dividends 2

Partnerships

Professional Firms

Collateral Managers

Commercial Banks

Asset Managers

5.0 ELIGIBLE INDUSTRIES

Amongst others this facility will support;
• Companies making the transition from
import-substitution to export orientation
• Companies moving up the export value chain, i.e.
from raw commodity exporters to processed goods
exporters;
• Traders with successful track-record who plan to go
into export manufacturing
• Logistic and transport services that support trade;
• Trade enabling/carrying infrastructure
• Tradable services

EXPORT DEVELOPMENT FUND

1st Floor - Pamodzi House, Presidential Way Drive • P. O. Box 30063, Lilongwe 3, Malawi
Tel: +265 (0) 882 415 633 Fax: +265 (0) 1 772 219 E-mail: edf@edf.mw
www.edf.mw