The Small and Medium Enterprises (SMEs) sector has attracted $10 million investment in the past 18 months from African Private Equity & Venture Capital Association (AVCA).
AVCA is a non-profit association, which aims to promote, develop and stimulate private equity and venture capital in Africa through research, advocacy, training and networking. AVCA was established to promote investment in Africa and to play a crucial role in the development of SMEs.
Speaking in Lagos, a board member of AVCA, Ms. Tokunboh Ishmael, said apart from $10 million invested in Nigerian SMEs, the group also invested $10 million in some SMEs in Ghana as well.
Although she did not mention the particular companies, she noted that AVCA has 1,000 investments across Africa.
Ishmael, who is also the Chief Executive Officer of Alitheia Capital, said private equity and venture capital are very crucial for SME sector finance.
She said: “Private equity and venture capital plays a crucial role in financing the SME sector, which is the engine of economic growth the world over.”
Speaking in the same vein, the Chief Executive Officer, African Capital Alliance, Mr Okey Enelamah, said that AVCAâ€™s firm’s target is unlisted businesses to prepare them for listing.
According to Enelamah AVCA would continue to create an enabling environment to attract capital and investment into Africa.
â€œAVCA will support local businesses to build their potential, establish strong corporate governance structure to ensure sustainable growth,â€ he said.
He re-emphasised the mission of AVCA, which is to promote and catalyse the private equity and venture capital industry across Africa.
Speaking on the 11th annual conference of AVCA slated for March 31 and April 2, Enelamah said the conference would offer an opportunity for investors to understand all the reforms in Africa and their investment potentials.