A business built on local expertise  

Since Goodwell’s inception over two decades ago, we’ve built our business with a “local-for-local” approach. Impact investment is only effective when it enables accessible progress for the people on the ground. Want to make impactful change for female farmers in Nigeria? You ask those women what they need, not someone sitting in an office half a world away.  

Now apply that approach throughout the entire investment process, from the base of a company’s value chain to the fund manager: a locally led approach has enabled us to support impactful solutions with strong financial returns. There is a clear advantage to building on a deep cultural understanding, a bedrock of contextual trust between investor and investee. And this advantage isn’t only about the personal touch: locally led investing reduces transaction costs, retains capital by circulating money in local economies, provides proximity for immediate support, enables accurate impact measurement, and allows for agile decision-making.  

Finding our way to emerging markets with local partners  

So how did Goodwell transform from a mission-focused idea in the Netherlands into an impactful local player in India and across Africa? The same way many good things start: with a chance encounter. Goodwell founder Wim van der Beek was passionate about the impact potential of microfinance, and was looking towards India, where the sector was most developed. When he met Vineet Rai, founder and Vice Chairman of Aavishkaar Capital at the Skoll Forum in London, Wim knew he had found his match. Together, Goodwell and Aavishkaar developed two joint funds focussed on financial inclusion in India, with the first launched in 2006. The two funds combined raised nearly USD 50 million, investing in local ventures improving access to basic financial services for underserved individuals and small- and medium enterprises (SMEs).   

Following those successes, our investors encouraged us to look towards Africa. While investigating possibilities on the continent in 2008, Goodwell’s Managing Partner Els Boerhof crossed paths with Alitheia Capital’s Managing Partner Tokunboh Ishmael at the annual AVCA conference. This brief encounter in the hotel lobby of a Botswana hotel transformed into a partnership that opened the doors to west Africa for Goodwell, and grew into an enduring, multi-fund collaboration that’s still in place today. 

Our efficient and effective entry into these regions was only possible because of our partnership with established local experts. Their existing knowledge of the local market and entrepreneurial ecosystems afforded us faster entry into India and Africa, thanks to their solid local connections and established track records. And, once our partnerships afforded us a solid foothold in west Africa, expanding our impact ambitions to east Africa and South Africa was the logical next step.  

Local teams enhance our value at every stage of the investment process

A local-for-local approach applies throughout Goodwell’s operations. A remote approach simply isn’t effective; the reality is that the continent has endured centuries of outsiders thinking “we know best” – and look where that has gotten the world. Africans know best what Africa needs. That’s why we have a 100% local investment team: Africa is brimming with talent and knowledge, and we are eager to embrace local experts.  

Local investment teams are best placed for deal sourcing. They know their market and ecosystem, and have an ear to the ground for the latest developments, actively participating with local incubators and accelerators. Their due diligence becomes a hands-on experience, rather than a box-ticking exercise. Vitally, local investment teams understand the needs of the local community. They have a clearer understanding of potential risks and returns, and exactly what products and solutions the people around them require.  

Once a deal has been done, the value addition of Goodwell’s local teams is a game changer. Local investment teams can tailor their contributions and advice to the local context – what’s right for Kenya might not work in Nigeria. Being close to the investee allows Goodwell to provide on-the-ground support in a timely manner, actively advising and/or serving as board members. Our local teams also have immediate access to impact and financial monitoring, the accuracy of which is essential for keeping everyone moving in the right direction. In the words of one our west African colleagues: “In 2024, the most significant value we delivered was through active portfolio engagement; helping companies refine their strategic direction, implement governance improvements, and strengthen their financial and operational structures.” 

All these locally led advantages add up, boosting the attractiveness of Goodwell portfolio companies for foreign and local investors alike.   

Local expertise creates lasting impact  

Deepening our local-for-local approach, Goodwell invests only in locally founded or led businesses, benefitting local individuals and communities, with local impact embedded into their business model. Entrepreneurs based in the area they hope to drive impact have a much deeper understanding of their market and their potential audience. They know the specifics of setting up and running a business there, without an outsider’s learning curve.   

For example: 

• Good Nature Agro knew that providing quality, drought-resistant seeds and appropriate training was essential for successful harvests in Zambia, but also understood that offering farmers access to financing was the underlying key to improving livelihoods. 

• Inclusivity Solutions built the technology to provide affordable insurance throughout the African continent, but knew that the best way to reach the masses was to bundle their services with other familiar services (like phone credit top-ups). 

• In Mozambique, Chicoa knew that they could go beyond fish farmers when improving local livelihoods. Their impact also extends to local traders (many of whom are female), who they provide with a high-quality product that increases their profits. 

• Origen Fresh leveraged a waste product that Kenyan farmers didn’t know what to do with (low-grade avocados) to produce high-value oil – increasing farmer incomes and reducing post-harvest losses at the same time. 

• Paga in Nigeria and ABC in Uganda know that mobile banking isn’t enough to reach underserved audiences – their agent networks are the foundation of financial inclusion for those who still rely on face-to-face transactions. 

• In Nigeria, OmniRetail saw a way to use technology to connect big brands to small informal retailers, giving them more control over their inventory and cashflow by ordering only the (small) amounts they need – often bought on credit. 

Another important factor for many African enterprises? Failure isn’t an option. Local entrepreneurs have proven more resilient to the ups, downs, and pivots of running a business, willing to think on their feet and take calculated risks.  

A worldwide local approach 

Goodwell applies our local approach throughout our entire organisation. While our partners and teams in Africa manage the investments on the continent, our team in the Netherlands focuses on our investors and operations. With a lot of our funding coming from the Benelux region, having a team based there allows us to continue offering a more personal, high-touch experience all the way up the chain of investment.  

We believe that local partnerships and local fund managers are the best way to successfully invest in emerging markets. Fund flow analyses have confirmed that investors trust in local managers is based on their past superior performance. Goodwell has certainly thrived with our high-touch, face-to-face, locally led approach. More funds and investors need to work this way; the era of managing (or interfering?) from afar should be over. It’s time to uplift the local innovators and entrepreneurs transforming their communities, countries, and continent. Our industry can make even greater impact by listening to the people with their feet on the ground, partnering with more local experts, and investing in local needs.