Investment Strategy

Investment Themes

SpringHill has developed a differentiated strategy based on three related investment themes offering attractive financial returns and demonstrable social benefit at scale.

    Small & Medium-Sized Enterprises. Some have called SMEs the “missing middle”; we see them as the missing backbone of African economies. Unlike microfinance-fueled micro-businesses, SMEs create employment and increase the tax base, providing revenue for critical social services. Unlike large-scale enterprises, SMEs are more likely to employ the poor and innovate. SpringHill invests in growth businesses with a latent demand for capital and the support, knowledge and networks we can provide.
    Innovative Products and Services. Given the profound differences in household incomes and technology infrastructure, simply adopting western technologies and business models in Africa does not work. Product and service innovation in communications, energy and financial services show exciting promise for both consumers and investors. SpringHill invests in companies delivering products and services that transform the lives of the poor through improved information, productivity, health and household economics.
    Replicable Business Models. Successful franchise business models scale faster, employ lower-skilled labor, entail less risk and require less capital than independent businesses. Business formats designed for replication – “business-in-a-box” – offer similar benefits as franchises but may be preferable in the frontier markets we are addressing. SpringHill invests to grow profitable franchise businesses or “businesses-in-a-box” that offer strong replication possibilities beyond the initial deal.

Geographic Focus

SpringHill focuses investment activity in east African countries based on the following considerations:

  • Regional coherence, enabling us to manage investments efficiently from two regional nodes
  • Diversification, managing country and sector risk
  • Economic vitality, favoring high-growth economies
  • Market size – both national and regional
  • Rule of law and property rights, ensuring we can protect shareholder interests
  • Exit viability
  • Existence of a trusted network and existing deal flow