May 19, 2020

AfDB signs US$13.9mn deal with Adiwale Fund for SMEs

SMEs
African Economy
investment
Economy
Leah Netabai
2 min
AfDB signs US$13.9mn deal with Adiwale Fund for SMEs

African Development Bank has signed a US$13.9mn equity investment with Adiwale Fund 1.

Adiwale Fund 1, is a first-generation private equity fund targeting SMEs with high growth potential in francophone West Africa. Adiwale Fund 1 has a target size of US$83.7mn to take minority stakes in SMEs for rapid scale up. 

Primary countries include: Cote d’Ivoire, Senegal, Burkina Faso and Mali.

Secondary countries include: Togo, Benin and Guinea.

Across these economies the fund will target consumer goods and services including education and health, business services including transport, logistics, information technology and construction and manufacturing including pharmaceuticals, agi-processing and chemicals. 

“The most exciting part is that the Fund focuses on SMEs in francophone West Africa, which accounts for nearly 19% of West Africa’s GDP but attracts only 7% of private equity capital. As these companies grow, they cross the borders and integrate across different countries,” said Abdu Mukhtar, Director for Industrial and Trade Development.

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The bank’s investment will provide growth capital for African SMEs resulting in a spill-over effect for job creation and tax revenue. In addition the fund will provide local entrepreneurs with management expertise, as well as boost best practice to support economic transformation. 

Over the last four months, AfDB has been investing in Egypt, Somalia, Zimbabwe, Eastern and Southern Africa, Ghana, Benin, Malawi, Sudan and Africa’s electricity, seeing strong results.

Did you know? AfDB received a CIPS Procurement Excellence Programme Award in September 2019.

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