Cote Dlvoire African Tender

The African Development Bank has approved a US20 million equity investment in Uhuru Growth Fund 1 a first-generation fund sponsored by Uhuru Partners Limited a private equity firm focused on high growth middle-market businesses across West Africa.Uhuru Partners Limited 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. The Banks equity support will enable Uhuru Partners to make investment forays into consumer-facing and financial services sectors in West African countries including Nigeria Ghana Cote dIvoire Senegal Burkina Faso and Mali.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 of the Funds target capitalization 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.Uhurus compelling investment proposition is underpinned by several macroeconomic and institutional factors. These key factors include West Africas large aggregate population rapid urbanization and youthful demographics sustained economic growth and relative political stability.The presence of Uhurus key executive and operational teams in Abidjan and Lagos is also perceived as a huge asset enabling the team to effectively source investment opportunities in the Anglophone and Francophone economies of West Africa. The PE firms presence in the regions largest and leading commercial hubs also enables them to get actively involved in the operations of their portfolio companies across the region.Abdu Mukhtar the African Development Banks Director of Industrial and Trade Development said the Banks investment will be instrumental to Uhurus 200 million fundraising exercise. The Banks support of Uhuru Growth Fund will unlock capital from other development finance and commercial investors into a fund that will help strengthen West Africas economies create jobs and drive development Mukhtar said.The Funds investment strategy is aligned with the Banks Ten-Year Strategy 2013-2022 focusing on inclusive growth and creating broad-based prosperity as well as the Banks Country Strategy Papers for target countries which seek inclusive growth access to local SME finance and regional integration as the pathway to sustainable development of the African continentThe Funds strategy is also aligned with the Banks High 5 priorities to Industrialize Africa Feed Africa Integrate Africa and Improve the quality of life for the people of Africa.