Kenya’s private equity fund that is backed by the private sector arm of the World Bank has raised about 30 million U.S. dollars to fund small and medium enterprises (SME) in the East Africa region, officials said Wednesday.
Fanisi Capital Managing Partner Ayisi Makatiani told journalists that the International Finance Corporation (IFC) has agreed to inject 7.5 million dollars out of the targeted 100 million dollars.
“The funds will be invested into East Africa’s SMEs in the four key high-growth sectors of healthcare, retail and wholesale, education and agri-business,” Makatiani said during the launch of the Fanisi Capital Fund II, which is a close-ended ten-year SME venture fund.
The private equity firm plans to use the funds raised to continue its investments mainly in Kenya, Rwanda, Tanzania and Uganda.
“So far local investors account for 45 percent of the funds raised, with the rest coming from various international investors,” Makatiani said.
Makatiani, who is also the CEO of Fanisi Capital, said that the new money raised will help to consolidate the gains made from the first fund.
“We have seen growth in the markets we have moved into so far and we are looking to capitalize on what we have gained so far and build even stronger businesses,” he added. Enditem