Financial Inclusion in Africa To Be Boosted Following Launch Of This New Fund
Recently, African countries have been experiencing positive developments in access to financial services. With the deepening of the financial sector, more financial services is provided to individuals and enterprises. Likewise, emerging technologies such as mobile money have helped broaden access to financial services, including savings and payment products.
Despite having undergone extensive financial sector reforms coupled with technological advancements for close to two decades, the financial systems of many African countries still remain under-developed compared to other developing economies.
In a bid to continue supporting financial inclusion in Africa, Dubai-based Investment banking advisory firm Nimai has unveiled a USD 150 Mn fund in a partnership with Kenya’s Victoria Commercial Bank .
The two entered into a strategic alliance to manage Nimai Emerging Financial Services Fund (NESF), a Private Equity Fund focused on investing into financial Services opportunities in Africa.
The Fund will invest in and actively manage a well-diversified portfolio of financial services opportunities and aim to improve the lives of at least 1.7 million underserved customers.
Among the African countries that will be targeted in the fund’s initial stages include Kenya, Tanzania and Ghana, Nimai said in a statement.
Pankaj Mundra, co-founder and managing partner of Nimai Capital, insisted on the need to develop financial services across all countries of Africa.
Pankaj expressed optimism that the fund will make a significant and positive impact in the lives of millions of families in addition to generating appropriate financial returns for investors.
“We will benefit from Victoria Commercial Bank’s business experience and deep understanding of the Kenyan market. After an intensive preparation, we are now commencing the launch of the Fund. We look forward to working with the Bank to sourcing and developing investment opportunities for the Fund across East Africa,” he added.
Nimai Co-Founder and Managing Director CA Pankaj Mundra said, “We are very excited to partner with Victoria Commercial Bank and will benefit from their business experience and deep understanding of the Kenyan market. We look forward to working with Victoria Commercial Bank to sourcing and developing investment opportunities for the Fund across East Africa.”
Yogesh Pattni, CEO of Victoria Commercial Bank, stated that his firm has been associated with Nimai for over two years adding that “I am glad that we are deepening our relationship by working together on this exciting new opportunity.”
The Fund will be regulated by the Cayman Islands Monetary Authority.
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