The African Development Bank (AfDB) has approved a $20 million equity investment in Uhuru Growth Fund.
It focused on high growth middle market businesses across West Africa. The bank’s equity support will enable Uhuru Partners to make investment forays into consumer facing and financial services sectors in West African countries, including Burkina Faso, Nigeria, Ghana, Cote d’Ivoire, Senegal and Mali.
Uhuru Partners is composed of an experienced indigenous team with strong local networks, extensive knowledge of the West Africa market and a track-record of SME investments in the region. Investments of $5 million and above will be made in companies in these sectors, helping them grow into regional champions and creating new, high quality jobs.
The proposed investment will give the Bank approximately 10 per cent of the Fund’s target capitalisation of $200 million. Equity capital is scarce in Africa, but particularly so for smaller companies with revenues below $50 million. Private equity funds such as Uhuru will help address this void. Uhuru’s compelling investment proposition is underpinned by several macroeconomic and institutional factors. (Source, African Development Bank).