The African Development Bank (ADB) recently approved an equity investment in € 12.5 million in equity funds first generation Adiwale Fund 1.
African financial institution noted that the fund is intended for small and medium-sized enterprises with high growth potential in the French-speaking West Africa.
"With 75 million target capitalization, the fund will acquire minority stakes in small and medium-sized enterprises, which are well established in their markets, which have a competitive advantage and can grow rapidly," said the Bank.
ADB says that several countries will be concentrated geographically fund, where the economic outlook and their own networks open to opportunities and that an average of & # 39; the amount of funds transactions will be from 3 to 8 million.
In a statement, it points to the Ivory Coast, Senegal, Burkina Faso and Mali to the & # 39 is the first country targeted and Togo, Benin and Guinea will follow in the second phase, noting that all of these countries today, "hui undervalued global market private capital.
Recall, Adiwale 1 Fund will focus on three main areas: consumer services (consumer goods and services, education and health care, etc.), business services (transport, logistics, IT, internet and construction) and industry (pharmaceuticals agriculture, chemical industry, etc.).
By Alhassane Haidar, head of services and non-sovereign industries ADB, "the investment bank in the fund Adiwale Fund 1 increase funding opportunities and support to strengthen the capacity of MSPA French-speaking West Africa."
Launched in 2016, the company that manages the fund, Adiwale Partners relies on a team of experienced West African professionals who combine them all, many years of experience in private equity, operations, financing the development and asset management in Africa, Europe and the United States .
Thanks to the investments of the Bank, this team is to help the recipient companies to create more value by improving internal functions and the application of best management experience, the bank said.
From a development perspective, the institute said that its investment will fund the growth of African SMEs, which will lead to the creation of new jobs (direct and indirect, skilled and unskilled, for men and women) and tax revenues,
"It will also benefit the local contractors who will benefit from experts in the field of business management, as well as to promote regional integration, because the fund will support companies looking to expand regionally," he adds t- she said in a statement.
Finally, continue to the same source, these investments will contribute to best practices in corporate governance, and human capital development. That drive higher revenues and economic transformation.
It should be noted that the Fund's investment strategy follows the three riorities High 5 Bank – Africa's industrialization; Integration of Africa and to improve the quality of life for people in Africa. It also meets the objectives of inclusive growth and improving productivity, registered in the 2013-2022 year, the Bank's strategy.