AfDB Approves USD 15 Mn For Anglophone West African SMEs
It has been confirmed that the Board of Directors for the African Development Bank (AfDB) has agreed to commit funds worth USD 15 Mn in equity investments under the auspices of Verod Capital Growth Fund III – a private equity fund that will invest in high-growth middle-market companies in Anglophone West Africa, including Nigeria, Ghana, Liberia, Sierra Leone and the Gambia.
According to a statement, the Fund’s investments will be directed towards companies operating in consumer-driven sectors such as light industrials, fast-moving consumer goods, education, financial services, and agribusiness. The actual size of individual investments will fall within a range that begins from USD 5 Mn and ends at USD 20 Mn.
Abdu Mukhtar, the Director of Industrial and Trade Development at AfDB said that the just-approved fund would assist in the acceleration of investments in small and medium scale enterprises SMEs in the West African region. According to him, the latest commitment will see to the creation of jobs and wealth, transfer knowledge and scale up local businesses.
Mukhtar also revealed that the USD 15 Mn would serve as a growth vehicle for growing SMEs in Africa, all of which put together are a key pillar to the industrial drive of the continent.
As for the Fund Manager, going by the name Verod Capital Partners, they are an experienced indigenous private equity firm with credible knowledge of the Anglophone West Africa market. The company also has in the offing, a solid record of accomplishments as it concerns investments in small scale businesses. Since 2008, Verod has invested in a total of 16 SME companies in the region.
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