AfDB invests €20 million in AfricInvest Fund III to support sub-Saharan SMEs
The fund is looking to raise €200 million.
The African Development Bank has announced it is investing €20 million in AfricInvest Fund III to support small and medium-sized enterprises (SMEs) in sub-Saharan Africa.
The fund is looking to raise €200 million to transform small businesses in the region.
It said it will provide capital to high-potential mid-sized companies in Sub Saharan Africa in a bid to enable them to become dominant national and regional market leaders.
The AfDB
in a statement that the fund capitalises on the fund Manager's previous experience and a strong track record, stemming from the strength of its management team and its well-established local presence across the continent.
AfricInvest Fund III is expected to yield increased financial returns in high growth sectors such as manufacturing, agribusiness, financial services, healthcare, energy and consumer goods across Africa.
The AfDB said it expects the fund to generate significant positive development results for households
through job creation.
It believes that AfricInvest Fund III will also lead to increased regional integration by supporting the
multinational expansion of SMEs.
The institution added that the funds fills a gap in business financing, as the mid-market niche is generally unattended, with the funds tending to focus on larger tickets or micro businesses.