Central African SME fund mobilises €14.5 million
Dutch Fund XSML has announced that its Central Africa SME Fund (CASF) has been closing at €14.5 million, thanks to final investments from the Netherlands Development Finance Company and the Lundin Foundation.
“With the increased funding from our investors the fund can provide long term risk capital to an additional eight to ten SMEs in the DRC and the Central African Republic,” said XSML managing partner Jarl Heijstee in a press release.
“Long term capital remains scarce in Congo and the Central African Republic. The increased capital commitment is also a testimony from our current investors that investing in SMEs can be done in a sustainable, profitable manner in these frontier markets,” he added.
The CASF invests in SMEs in both the Central African Republic and the Democratic Republic of the Congo with a view to
sustainable economic development through entrepreneurship.
The development of SMEs is a positive driver for sustainable economic growth. Figures from the World Bank reveal that SMEs represent 20 per cent of overall GDP in sub-Saharan Africa.