New $660m investment company to support African financial institutions
Norfund, Rabobank and FMO have formed the company.Norwegian development body Norfund, Dutch bank Rabobank and private sector development bank FMO have launched a $660 million (€590 million) investment company.
From January 2017, the new company plans to begin operations and allocate new capital for investment in banks that serve retail and small and medium-sized enterprise (SMEs) clients in more than 20 countries in eastern and southern Africa, the Financial Times reports.
Berry Marttin, board member of Rabobank, told the newspaper that the long-term forecasts for Africa are compelling.
"The population growth projections mean there is upside potential," he said. "We have a focus on food production and local banks provide access to finance for farmers which will support that development."
FMO owns 27 per cent of Arise, while Rabobank contributed 25 per cent and Norfund 48 per cent.
The initial $660 million investment is expected to grow in the coming years to $1 billion.