As ADB Splashes US$15m… Big Boost For Trade Sector

 

By Ayodele Deen Cole

Board of Directors of the African Development Bank have recently approved a-fifteen million Dollar Equity Investment in Verod Capital Growth Fund III in a bid to boost investments in high growth middle market companies in Sierra Leone and other West African countries.

According to the African Development Bank’s Director of Industrial and Trade Development, Abdu Mukhtar, the funds’ investments will be in companies in consumer-driven sectors including light industrial, fast moving consumer goods, education, financial services and agro processing. He furthered that the ticket size for each investment will be between five million and twenty million Dollars, adding that the fund will help accelerate investments in small and medium scale enterprises (SMEs) in the West African region, as this is key to job and wealth creation, knowledge transfer and scaling up of local businesses.

Explaining further about the group, The AFBD senior official noted that the Fund Manager, Verod Capital Partners, 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. The Fund’s target size is US$150 million. Verod Capital Growth Fund III, he added, 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.