AfDB approves 15 million dollars equity investment to grow SMEs

By
Maxwell Awumah, GNA

Hohoe, Sept. 9, GNA – The Board of Directors
of the African Development Bank has approved a 15 million-dollar equity
investment in Verod Capital Growth Fund III, to boost the growth of small and
middle-scale enterprises (SMEs) in West Africa.

The investment is a private equity fund that
will make investments in high growth middle market companies in Anglophone West
Africa including Ghana, Nigeria, Liberia, Sierra Leone and the Gambia.

The Fund’s investments will be in companies in
consumer driven sectors including light industrials, fast moving consumer
goods, education, financial services and agro processing, a statement copied to
the Ghana News Agency said.

Mr Abdu Mukhtar, the AfDB’s Director of
Industrial and Trade Development said: “The Fund will help accelerate
investments in small and medium scale enterprises in the West African Region.
This is key to job and wealth creation, knowledge transfer and scaling up of
local businesses.”

“The Fund will provide an important vehicle to
growing SMEs in Africa, which are a key pillar to the Continent’s
industrialisation drive”.

The Fund Manager, Verod Capital Partners, is
an experienced indigenous private equity firm with extensive knowledge of the
Anglophone West Africa Market. It also possesses a strong record of
accomplishment in SME investments. Since 2008, Verod Capital Partners has
invested in 16 SME companies in the Region. The Fund’s target size is 150
million dollars.

Verod Capital Growth Fund III will have a
direct and measurable impact on individual businesses in West Africa while
improving their ability to expand, thereby providing benefits in terms of
government revenue and job creation to the countries’ domestic economies.

This is in line with the Bank’s Private Sector
Strategy of supporting projects that have a strong impact on job creation,
economic growth and poverty alleviation.

GNA

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