Catalyst Fund’s Chief Executive Officer Paul Kavuma. [Photo/businessdaily.co.ke]The African Development Bank (AfDB) has approved a $15million investment to several middle level companies in Kenya and other East African countries.
The investment bank in a statement said the amount which is second by the private equity firm Catalyst Principal Partners will make investments across sectors with priority being financial services, consumer staples, health care and industrials.
“The board of the African Development Bank approved an equity investment of $15million in a second generation private equity fund investing in mid-market companies in East Africa,” AfDB said in a statement.
The bank said being the major investor in Catalyst Fund said that it will set up an advisory committee that will ensure transparency of the capital at both the bank and companies level.
“As the anchor investor in Catalyst Fund I, the bank is considering an equity participation of 8.6 per cent of the second fund’s capitalization, an advisory committee to ensure that transparency, social, environmental and corporate governance best practices are adhered to,” the statement reads further.
The Catalyst’s initial fund worth $123million has been invested in 9 companies across the region, among them: Jamii Bora Bank, Goodlife Pharmacy (Kenya), Zenufa Pharmaceuticals (Tanzania) among others.