Quick loans for sustainable projects
The OVO Acceleration Fund provides affordable, tailor-made loans to African start-ups with a sustainable impact. Not donations, in other words, but repayable funds that entrepreneurs need to realise their ambitious growth.
The goal? To help African entrepreneurs do even better. Good ideas cannot always wait long for money. Sometimes the opportunity is over before the recruitment process is complete. Through the OVO Acceleration Fund, entrepreneurs can quickly borrow a limited amount of money. When the social loan is paid off, the sum ends up back in the fund for new projects of new enterprises. In this way, OVO can ensure sustainable impact. Thanks in part to this approach, OVO won the European Business Award for the Environment.
Fuel for accelerated growth
Specifically, the OVO Acceleration Fund manages donations from individuals and companies. Those who invest money receive a tax certificate for doing so.
African SMEs awarded the 'OVO certified for change' label by OVO's investment committee are eligible for a loan by the fund once 50 percent of the amount has been financed by business angels. These loans are up to (50% of) 50,000 euros with an interest rate of 7 to 10 percent and a term of 1 to 5 years.
50% of the total loan amount can be contributed by the OVO ACCELERATION FUND. The fund invests only in companies with acceptable risk. Control and follow-up is in the hands of OVO employees and partners. OVO operates on a one-time operating cost of 5% of the total investment amount.
| The Acceleration Fund is a 'Friends of' fund hosted by the King Baudouin Foundation. They provide a tax certificate for the donations. |