African Development Bank approves $25m investment to support African businesses

The Board of Directors of the African Development Bank (AfDB) has agreed and approved a $25 million equity investment in the Pan-African fund known as the Vantage Capital Fund II (VCF II).

The Bank says the fund, a second-generation multi-sector fund, which is designed to reach $250 million, will provide financing – a combination of debt and equity instruments – to selected portfolio companies across Africa.

In a brief statement on July 15, 2011, the AfDB indicated that the fund will support the growth of African businesses.

“VCF II is expected to help catalyze some $735 million in aggregate capital flows to African mid-markets companies, trigger the creation of 10,000 additional jobs and bring in $145 million in government revenues,” said the Bank.

The Vantage Capital Fund has up to 45% of its portfolio in the Southern Africa Development Community (SADC) countries, 30% in North Africa and 25% in East and West Africa.

By Ekow Quandzie