What is the OVO Acceleration Fund?
The OVO Acceleration Fund comprises donations from private individuals, businesses and other organizations. The fund uses these donations to provide financial support for social and sustainable entrepreneurship in Africa in the form of low-interest loans. OVO (Entrepreneurs for Entrepreneurs) supports these projects with expertise. When the loans mature these budgets are returned to the Fund, thereby enabling new projects to be financed. A single donation to the Fund therefore has an impact on multiple projects. The aim of the fund is to provide financial support for African entrepreneurs who have little or no access to the financial markets.
The OVO Acceleration Fund was set up by the non-profit organization Entrepreneurs for Entrepreneurs (OVO for short).
Who set up the OVO Acceleration Fund?
For the OVO Acceleration Fund, OVO works closely with the King Baudouin Foundation (KBF). The KBF is responsible for managing the Fund. This includes the receipt of donations, issuing tax certificates, drawing up contracts, and transferring the money to the borrowers. The KBF then tracks the receipt of the repayments and the interest. The KBF also makes sure the projects are in line with the OVO Acceleration Fund’s mission and vision.
What is the role of the King Baudouin Foundation?
The Fund concentrates on businesses with a sustainable economic approach with a significant social impact on employment opportunities in Africa.
What projects does the OVO Acceleration Fund focus on?
Start-ups, scale-ups and smaller businesses all qualify.
What type of businesses qualify?
• The company is economically sustainable for a maximum of 5 years
What criteria are used?
• The location of the economic activity is Africa
• An (initial) business plan is in place
• There is a need for between 5,000 and 50,000 euros of finance for the start-up or scale-up
• The company generates a social impact by creating employment, offering essential services or products to the lower class, etc.
• There is no negative ecological impact; on the contrary, there is preferably a positive or regenerative impact
The projects are selected as part of the ‘Sustainable Technology for Africa’ competition that OVO organizes each year in Belgium and in a number of focus countries in Africa.
Can anyone contribute a project?
The OVO Acceleration Fund only makes a financial contribution if at least 50% of the original project investment is in place and if OVO’s Investment Team has examined the business plan and decided it is viable.
What financial selection criteria need to be satisfied?
Initially the fund is focusing on Uganda, Rwanda and Senegal. This country focus does not apply for projects by members of the African diaspora in Belgium. All African countries can be considered in this case if strict monitoring is possible via the project owner. The ‘possibility of monitoring’ is a crucial criterion in the selection of the projects.
What countries does the OVO Acceleration Fund focus on?
Investments are only made in businesses with an official address in Africa.
Are Belgian entrepreneurs also eligible for finance?
It takes the form of a social loan, often repayable in 3 to 5 years with an interest charge that covers the project risk and exchange rate risk. The entrepreneur is assisted with setting up and implementing his project by OVO experts.
What form does the finance take?
OVO is also concerned with knowledge transfer and tweaking of the business plan where necessary.
Is the OVO Acceleration Fund only restricted to injections of finance?
The projects are monitored by OVO.
Who takes care of coaching and monitoring in the projects?
An update on each project is published twice a year.
Are details of the current status supplied for each project?
The OVO Acceleration Fund aims to assure the scope of the donations received by creating reserves drawn from interest income on outstanding loans. These reserves will offset any losses.
What happens if a project fails?
The investment in each project runs for a maximum of 5 years.
Over what period is the investment in each project spread?
Donations can be made to the Fund by transferring money to account number BE10 0000 0000 0404 with the structured code ***018/0530/00002***
How can donations be made to the OVO Acceleration Fund?
Individuals can contribute to the OVO Acceleration Fund in just the same way as companies.
Can individuals contribute too?
The OVO Acceleration Fund will update each donor at regular intervals on the status of the project of his or her choice. Donors receive a tax certificate from the King Baudouin Foundation for amounts of €40 or more.
What does the OVO Acceleration Fund offer in return for the investor?
Because the Fund wants to spread the risk, the maximum investment per project is 25,000 euros.
Is there an upper limit for the financial injection per project?
Once the project finance has been repaid, the money is reinvested in a new project. The funds thus remain permanently available and can be used again to support other African entrepreneurs.
What happens to the investment if the project finance is repaid?
The OVO Acceleration Fund account is managed by the King Baudouin Foundation. All donations are paid into this account.
Who manages the OVO Acceleration Fund account?
For a donation of 40 euros or more a tax certificate will be issued by the King Baudouin Foundation.
Is it possible to obtain a tax certificate?
OVO makes a one-off 5% charge per donation. This covers all costs (including the administration costs of the King Baudouin Foundation).
What administrative charge does OVO make?