European Investment Bank has invested €25 million (Sh3.5 billion) in Amethis Fund III, a pan-African fund providing private equity growth capital to medium-sized firms on the continent, including Kenya.
Amethis Fund III will target companies supplying goods and services to low and middle-income populations in Africa.
Target sectors include healthcare, business services such as logistics and information technology, manufacturing and distribution spanning agribusiness and fast-moving consumer goods.
Other sectors are non-banking financial services, and those related to infrastructure and energy.
“The EIB is happy to support Amethis in its effort to invest in small companies in low- and middle-income countries across Africa,” said EIB Vice President, Thomas Ostros in a statement yesterday.
“We see Africa as a close and important partner to the bank, which has a lot of potential and untapped opportunities. However, African enterprises still don’t have enough patient equity capital they need for them to grow, which is what our partnership with funds like Amethis seek to address,” he said.
The fund’s strategy is aligned with EIB global’s investment goals as well as the European Union’s Global Gateway strategy by supporting economic development in a diversity of geographies, notably sub-Saharan countries.
The fund will pursue an impact-driven strategy developed by Amethis to address critical issues for the continent’s sustainable development, by focusing on gender equality, sustainable employment – with a particular emphasis on health coverage, and climate considerations..
Amethis has supported the growth of more than 30 African companies employing more than 40,000 people.
In Kenya, Amethis has in the past invested in household brands such as Naivas Supermarket and is looking to support more companies.
The EIB has invested nearly €3 billion (Sh430.65 billion) in equity funds with a geographic focus entailing Africa.
