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The African Development Bank (https://www.afdb.org) has approved a US $ 20 million equity investment in Uhuru Growth Fund 1, a first generation fund sponsored by Uhuru Partners Limited, a private equity firm focused on the market companies across West Africa.
Uhuru Partners Limited is comprised of an experienced indigenous team with strong local networks, in-depth knowledge of the West African market and a history of business. investments in SMEs in the region.
The Bank's capital support will allow Uhuru Partners to make inroads into the consumer services and financial services sectors in West African countries, including Nigeria, Ghana, Côte d'Ivoire , Senegal, Burkina Faso and Mali.
Investments of $ 5 million or more will be made in businesses in these sectors, which will help them become regional champions and create new high quality jobs.
The proposed investment will provide the Bank with approximately 10% of the Fund's target capitalization of $ 200 million.
Equity is scarce in Africa, but especially for small businesses with revenues of less than $ 50 million. Private equity funds such as Uhuru will help address this gap.
Uhuru's compelling investment proposal is based on several macroeconomic and institutional factors. These key factors include the large overall population of West Africa, rapid urbanization and young demographics, sustained economic growth, and relative political stability.
The presence of the main executive and operational teams from Uhuru to Abidjan and Lagos is also seen as a considerable asset, allowing the team to efficiently seek investment opportunities in the English and French speaking economies of West Africa. . The presence of PE in the largest and most important shopping centers in the region also allows them to actively participate in the operations of their portfolio companies in the region.
Abdu Mukhtar, Director of Industrial and Commercial Development of the African Development Bank, said the Bank's investment would contribute $ 200 million in fundraising. "The bank's support to the Uhuru Growth Fund will unlock capital from other financial and commercial investors, to create a fund that will help strengthen West Africa's economies, create jobs and improve promote development, "said Mukhtar.
The Fund's investment strategy is aligned with the Bank's Ten-Year Strategy (2013-2022), which focuses on inclusive growth and the creation of widespread prosperity, as well as on country strategy papers. the Bank for the target countries seeking inclusive growth, access to local SMEs. Finance and regional integration as a path to sustainable development of the African continent
The Fund's strategy is also aligned with the Bank's five key priorities: to industrialize Africa, feed Africa, integrate Africa and improve the quality of life of Africa's population.
Distributed by APO Group on behalf of the African Development Bank Group (ADB).
Media contact:
Chawki Chahed
Head of Communication
[email protected]
About the African Development Bank Group
The African Development Bank Group (AfDB) (https://www.afdb.org) is Africa's leading development finance institution. It comprises three separate entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the ADB contributes to the economic development and social progress of its 54 regional member states.
For more information: j.mp/AfDB_Media
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