The African Development Bank (AfDB) has approved a $20 million equity investment in Uhuru Growth Fund 1 for Nigeria, Ghana, Cote d’Ivoire, Senegal, Burkina Faso and Mali.
The Fund is sponsored by Uhuru Partners Limited, a private equity firm, focused on high growth middle market businesses across West Africa.
The bank’s equity support will enable Uhuru Partners to invest in consumer facing and financial services sectors in West Africa.
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 AfDb approximately 10% of the Fund’s target capitalisation of $200 million.
The AFDB’s Director of Industrial and Trade Development, Abdu Mukhtar, said: “The Bank’s support of Uhuru Growth Fund will unlock capital from other development finance and commercial investors into a fund that will help strengthen West Africa’s economies, create jobs and drive development.”