Capital Alitheia and Goodwell Investments confirm profitable departure from uMunthu Fund's Baobab Nigeria project investment
Baobab Nigeria, a financial institution dedicated to delivering inclusive banking services to individuals and Micro, Small, and Medium Enterprises (MSMEs) in underserved areas of sub-Saharan Africa, has experienced significant growth over the past decade. This transformation is largely due to the investment and support from the uMunthu Fund, a joint initiative by Alitheia Capital and Goodwell Investments.
Initially a small operation in Kaduna state, Baobab Nigeria has expanded its reach, now serving over 230,000 customers across 16 Nigerian states, operating through a network of 38 branches. This expansion has been instrumental in bridging the financial inclusion gap in Nigeria, particularly in the northern regions.
The uMunthu Fund's investment in Baobab Nigeria began in 2012. Over the years, it played a key role in professionalizing Baobab Nigeria, improving governance, and facilitating its growth from a microfinance institution to one of Nigeria's top national Microfinance Institutions (MFIs). The financial success of uMunthu's investment was evident, with the fund's value tripling in Naira terms.
Baobab Nigeria's growth is not just numeric. It has significantly contributed to closing the financial inclusion gap in Nigeria. By 2023, government statistics reported that 26% of Nigerians still lacked access to financial services, a substantial improvement from previous years.
The uMunthu Fund's impact on Baobab Nigeria extends beyond financial growth. It has enabled financial access for individuals and MSMEs typically excluded from traditional banking services. This access has supported economic empowerment and SME development, fostering job creation and local economic growth.
Moreover, the uMunthu Fund's investment in Baobab Nigeria has demonstrated the viability of patient capital in frontier markets, delivering sustainable financial and social outcomes. This demonstration is particularly noteworthy as it reflects the potential of impact investments in sub-Saharan Africa.
The exit of Alitheia Capital and Goodwell Investments from Baobab Nigeria marks a new chapter for the company, transitioning to full ownership under the international Baobab Group. However, Alitheia and Goodwell remain committed to their hands-on approach with the uMunthu portfolio and are optimistic about further exits in 2025.
The uMunthu II Fund is currently in its final fundraising phase, seeking investors inspired by Baobab Nigeria's proven impact and growth. As the fund continues its mission to support financial inclusion and SME development in sub-Saharan Africa, it looks forward to fostering more transformative partnerships like the one with Baobab Nigeria.
In recognition of its growth and reputation in the sector, Baobab Microfinance Bank was awarded Nigeria’s Best Micro Finance Bank in 2025. This award underscores the impact of the uMunthu Fund's investment in Baobab Nigeria over the past decade, catalyzing the institution's growth as a leading inclusive financial services provider in Nigeria.
In conclusion, the history of the uMunthu Fund’s involvement with Baobab Nigeria spans over a decade, catalyzing the institution’s growth as a leading inclusive financial services provider in Nigeria and contributing meaningfully to financial inclusion and SME development in sub-Saharan Africa.
