The Fundo Activo de Capital de Risco Angolano (FACRA) is a government backed venture capital fund established under Presidential Decree No. 108/12 of June 7, 2012, with special emphasis on investing in Angolan Micro, Small and Medium Enterprises (MSME) through its creation, innovation, and expansion of its business across Angola.

As part of its mission to provide MSME with a new investment platform and opportunity to explore the vast Angolan market, FACRA held on January 22, 2015, an investment forum called the “FACRA Day” to help expand existing businesses or launch new initiatives.

“FACRA Day” provided an opportunity for national entrepreneurs to strengthen their investment capabilities and build trusted partnerships – thus meeting the challenges of growth and diversification of the Angolan economy.

National entrepreneurs

As businesses grow in Angola they often reach a plateau where they feel limited to grow their business. Many home grown businesses struggle to find enough talent at the workforce, and their expansion can be problematic due to the bureaucratic environment at the credit institutions.

Medium-sized companies are often unable to obtain bank loans to finance new offices or expand beyond borders. The banking sector is growing very quickly but there is a gap for the Angolan companies that are ready to expand.

FACRA provides the necessary support to local entrepreneurs. FACRA’s investment conditions for companies include corporate governance rules for transparency and active management.

International entrepreneurs and co-investors

International entrepreneurs and businesses can add great value to Angolan MSMEs and SMEs through the creation of local joint-ventures. Foreign co-investment partners bring competencies, innovation and technological capabilities and management resources to develop innovative products and services in Angola. Combined with the expertise and capital of the local business partner, international partners can help foreign companies significantly grow their businesses in the local market. FACRA acts as a platform to connect foreign entrepreneurs willing to enter the Angolan market by joining forces with local entrepreneurs, co-investors and FACRA.

How FACRA can support entrepreneurs

FACRA will be a minority shareholder and can provide stable long-term equity funding to a business. FACRA can help if your business is small or established and needs capital injection to expand its services or geographic reach. The criteria must always be that the business has high growth potential. FACRA’s deep knowledge of the local marketplace also means that it can help MSMEs by boosting business skills and by actively participating in a company’s strategic development.

FACRA’s investment will also strengthen a company’s debt-to-equity ratio, allowing for leverage financing through commercial credits with a lower risk profile and, therefore, lower interest rate charges.