The Africa Development Bank (AFDB) has approved $12.5 million equity investment in Alitheia Identity Fund (AIF) to invest in Small and Medium Enterprises being driven by women.
AIF is a private equity fund managed by Alitheia Identity Managers, a joint venture between two established women-owned fund management companies, Alitheia Capital Limited of Nigeria and Identity Development Fund Managers of South Africa.
AfDB said that AIF intends to raise $100 million in two closings to make equity investments in high-growth established SMEs, with emphasis on women-led SMEs in 10 African countries, which includes Malawi, Lesotho, Swaziland, Botswana, Namibia, South Africa, Zambia, Zimbabwe, Ghana and Nigeria.
The Financial Sector, Development Department Director, AfDB, Stefan Nalletamby, said that, “through the investments made over the life of this fund, it is expected that over 12,000 jobs will be created and over 50 per cent of the jobs created will be permanent.
“Furthermore, more than 50 per cent of the jobs created will be occupied by women and this investment will provide scarce medium to long-term capital to at least 30 indigenous SMEs.”
According to Nalletamby, AIF is expected to yield financial returns in high growth sectors such as agriculture, agro-processing, and manufacturing across targeted countries.
He noted that AIF is expected to yield financial returns in high growth sectors such as agriculture, agro-processing and manufacturing across targeted countries.
“It will provide capital of between $2m to $5m to high potential mid-sized companies in target countries and would transform them into local and regional market leaders,” he said.
AfDB’s Operations Vice President in charge of Regional Integration, Infrastructure and Private Sector, Solomon Asamoah, said that, “accelerating women’s financial inclusion requires bold and sustained action to advance women’s economic opportunities and rights to ensure that they can meaningfully participate in the economy without undue constraints and barriers that limit their progress.”
Also commenting on the project, the bank’s Special Envoy on Gender, Geraldine Fraser-Moleketi said: “The project has excellent gender effects that will arise from the increased opportunities for women as over two thirds of the companies to be supported by AIF are majority owned by women and new jobs created will be women dominated.”
