AfDB makes $50m ACF investment
The African Development Bank (AfDB) has approved an equity investment into the Africa Capitalization Fund (ACF) valued at $50 million (€37 million).Its board of directors made the decision yesterday (April 28th) at a meeting in Tunis. The aim of the fund is to assist the financial sector across Africa by stabilising banks' portfolios and encouraging private sector investment into emerging financial markets, among other objectives.
A target of $200 million has been set for the ACF, which runs for eight years and can make direct or indirect investments through subsidiaries and holding companies. "It offers an opportunity for governments to privatise the relevant banks in their country and for family-owned banks to diversify their ownership and expand their operations regionally," the AfDB said in a statement.
The involvement of the bank - which was founded in 1964 - will act as a catalyst for other investors to take part on the ACF, it added.