Finnfund commits $10m to West African PE vehicle

Finnfund, a Finnish development financier and impact investor, announced today a $10 million commitment to Uhuru Growth Fund I.

Uhuru Growth Fund I is a first-generation fund focusing on high-growth SME and middle-market businesses operating in the consumer-facing and financial services sectors. The fund will seek investments in West African countries including Nigeria, Ghana, Côte d’Ivoire and other Francophone West African markets such as Burkina Faso, Mali and Senegal.

Finnfund’s commitment is part of the first close of Uhuru Growth Fund I at $113 million, announced by Uhuru Investment Partners. The fund has a target fund size of $200 million.

In addition to Finnfund, the fund’s other international investors include the European Investment Bank, DEG, CDC, AfricaGrow, SIFEM and Kuramo Capital.

Riikka Molander, associate director and head of funds at Finnfund said, “We are glad to announce our commitment to Uhuru Growth Fund I. Through this funding, Finnfund aims to foster the growth and development of SMEs and middle-market businesses in West Africa, the region that includes a number of least developed and fragile states, in which many companies are lacking financing and support to develop and grow their businesses. This is particularly needed in the recovery from the economic and social consequences of the Covid-19 crisis.”

Uhuru Growth Fund I is a closed-end private equity fund, that expects to achieve the final close in the first quarter of 2022.

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