African Development Bank (AfDB) has invested $15 million in Shore Capital Fund III, a multinational Private Equity Fund that encourages financial inclusion by supporting financial service providers serving Africa’s low-income and emerging middle-class communities.
The private equity fund has a capitalization target of $150 million and plans to fund a variety of financial institutions including Small Business Banks (SBBs), microfinance institutions (MFIs), insurance providers, leasing companies and financial technology providers, a report by The Nerve Africa confirmed.
Shore Capital Fund III hopes to invest in about 15 institutions with a planned $8 million investment per firm. It will focus all of its investment within sub-Saharan Africa.
The fund manager has a 13-year track record of investing in the financial services sector with a focus on inclusiveness.
Its latest round of investment is in line with the AfDB’s core mandate of promoting financial inclusiveness through strategic developmental investments.