African Development Bank approves investment in growth fund sponsored by Uhuru Partners Limited

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Uhuru Growth Fund I, a first-generation fund sponsored by Uhuru Partners Limited, a private equity firm, has received the approval of a $20 million equity investment from the African Development Bank.

Uhuru Partners Limited, which is an equity firm focused on high growth middle market businesses across West Africa, is composed of an experienced indigenous team with strong local networks, extensive knowledge of the West Africa market and a track-record of SME investments in the region.

The support from the African Development Bank would enable Uhuru Partners make investment forays into consumer facing and financial services sectors in West African countries including Nigeria, Ghana, Cote d’Ivoire, Senegal, Burkina Faso and Mali.

Investments of $5 million and above would be made in companies in these sectors, helping them grow into regional champions, and creating new, high quality jobs.

The proposed investment will give the African Development Bank approximately 10 percent of the Fund’s target capitalisation of $200 million.

Equity capital is scarce in Africa but particularly so for smaller companies with revenues below $50 million. Private equity funds such as Uhuru will help address this void. Uhuru’s compelling investment proposition is underpinned by several macroeconomic and institutional factors.

The factors include West Africa’s large aggregate population, rapid urbanisation and youthful demographics, sustained economic growth and relative political stability.

The presence of Uhuru’s key executive and operational teams in Abidjan and Lagos was also perceived as a huge asset, enabling the team to effectively source investment opportunities in the Anglophone and Francophone economies of West Africa.


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