The African Development Bank (AfDB) has approved $15 million for equity investment in Verod Capital Growth Fund III in Nigeria and other West African nations.
According to the AfDB, the investment is a private equity fund for investments in high growth small and medium enterprises (SMEs) in Anglophone West African nations.
This was revealed in a statement on the bank’s website where it added that investment was approved by its Board of Directors for SMEs in Nigeria, Ghana, Liberia, Sierra Leone, and the Gambia.
According to the AfDB, the move is aimed at companies in the consumer-driven sectors as a ticket size for every investment is between US$5 million and US$20 million.
“The Fund will help accelerate investments in small and medium scale enterprises (SMEs) in the West African region,” the bank said.
“This is key to job and wealth creation, knowledge transfer and scaling up of local businesses.
“The Fund will provide an important vehicle to growing SMEs in Africa, which are a key pillar to the continent’s industrialization drive.”
It noted that “Verod Capital Growth Fund III will have a direct and measurable impact on individual businesses in West Africa while improving their ability to expand thereby providing benefits in terms of government revenue and job creation to the countries’ domestic economies.
“This is in line with the Bank’s Private Sector Strategy of supporting projects that have a strong impact on job creation, economic growth and poverty alleviation.
“Verod Capital Partners, the Fund manager, is an experienced indigenous private equity firm with extensive knowledge of the Anglophone West Africa market.
“It also possesses a strong record of accomplishment in SME investments. Since 2008, Verod Capital Partners has invested in 16 SME companies in the region.”