Creation of a $100 million SME fund in Sierra Leone

Jul 25, 2013

JP Anderson Ltd has partnered with several philanthropists to create the "Sierra Leone Development Fund", a private equity fund which will invest in small and medium-sized enterprises (SMEs) in Sierra Leone.

JP Anderson Ltd has partnered with several philanthropists to create the "Sierra Leone Development Fund", a private equity fund which will invest in small and medium-sized
enterprises (SMEs) in Sierra Leone.

The firm seeks to raise $100 million (€75.6 million) to invest in companies with a turnover of more than two million
dollars,
Ecofin news agency reports.

The investment ticket will be between $5
million
and $10 million to support SME projects than can strongly stimulate growth and development.

"JP Anderson is not only a funder of projects and / or companies. We will use all our skills and contacts to organize and influence the company's development for each investment," said CEO of JP Anderson James Price, quoted by Ecofin.

The private sector, largely informal, is the main source of economic activity in Sierra Leone. According to a report from the African Economic Outlook, limited access to credit - particularly for SMEs - is the main obstacle to growth and job creation, with the wide range of interest rates making credit expensive.

The fund will complement the government's efforts,
which have led to the implementation of
structural policies aimed at developing the financial sector and improving the business climate, including the creation in 2011 of a Credit Reference Bureau.ADNFCR-2976-ID-801616512-ADNFCR