The European Investment Bank (EIB) has announced a significant investment of €25 million (Sh3.5 billion) in Amethis Fund III. This pan-African fund aims to provide private equity growth capital to medium-sized enterprises across the continent, including in Kenya. The EIB’s investment underscores its commitment to fostering economic development and supporting businesses that drive sustainable growth in Africa.
Amethis Fund III is designed to target companies that supply essential goods and services to low and middle-income populations in Africa. This includes sectors such as healthcare, logistics, information technology, manufacturing, and distribution. By focusing on these critical areas, the fund aims to address the continent’s pressing needs and contribute to its sustainable development.
EIB Vice President Thomas Östros emphasized the importance of this investment, stating, “The EIB is happy to support Amethis in its effort to invest in small companies in low- and middle-income countries across Africa.” He highlighted the potential and untapped opportunities in Africa, noting that many enterprises lack the patient equity capital needed for growth. The partnership with Amethis seeks to bridge this gap and support the expansion of African businesses.
The investment aligns with the EIB’s global investment goals and the European Union’s Global Gateway strategy. These initiatives aim to support economic development across diverse geographies, with a particular focus on sub-Saharan Africa. By backing funds like Amethis, the EIB demonstrates its commitment to driving impact-driven strategies that address critical development issues on the continent.
Amethis has a proven track record of supporting African businesses, having facilitated the growth of more than 30 companies that employ over 40,000 people. In Kenya, Amethis has previously invested in well-known brands such as Naivas Supermarket and continues to seek opportunities to support more enterprises. This ongoing investment in local businesses is crucial for stimulating economic activity and creating sustainable employment.
The EIB has invested nearly €3 billion (Sh430.65 billion) in equity funds focused on Africa, reinforcing its role as a key partner in the continent’s development. This latest investment in Amethis Fund III further solidifies the EIB’s commitment to fostering sustainable growth, promoting gender equality, and addressing climate considerations.
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