IFC invests in West African PE fund
The IFC announced an investment in Uhuru Growth Fund I, a fund managed by Uhuru Investment Partners, a middle-market private equity firm in West Africa. The fund will provide growth capital to the region’s small and medium-sized enterprises (SMEs).
IFC’s support includes an equity investment of up to $10 million from IFC’s capital and an additional $10 million from the Blended Finance Facility of the International Development Association’s Private Sector Window, which helps de-risk investments in low-income countries.
The fund invests exclusively in low-income countries, focusing on high-growth companies offering consumer and financial services in Nigeria, Ghana, and Côte d’Ivoire. The fund will also invest in businesses in Senegal, Mali and Burkina Faso. At least 25% of the companies the fund invests in will be owned or led by women.
In addition to providing equity capital, Uhuru will help companies improve operations, secure banking relationships, and expand domestically, as well as across the region’s Anglophone and Francophone economies.
”IFC’s support has been crucial for a first-time fund like ours to reach our fundraising target in a challenging environment,” said Yemi Osindero, managing partner of Uhuru. ”Entrepreneurs in our markets need partners that understand their challenges and can provide not just the capital, but the support to enable their businesses to thrive, be impactful and ultimately succeed. We look forward to partnering with passionate local entrepreneurs to grow their business and to creating sustainable value for our investors and all other stakeholders.”
”SMEs are essential to economic growth, job creation, and poverty reduction,” said Kevin Njiraini, IFC’s director for Southern Africa and Nigeria. ”Private equity financing can help smaller businesses grow into bigger regional players. By investing in Uhuru, we will enable more small businesses in Nigeria, and West Africa more broadly, to access much-needed growth capital to recover from the Covid-19 pandemic, offer innovative products, and support the region’s economic development.”
IFC’s private equity funds strategy focuses on providing growth capital to funds with the highest likelihood of financial and developmental success. IFC has committed more than $2 billion to more than 100 funds in Africa.
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