Tanzania initiates $300m private equity fund

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Locals have been urged to invest more in Tanzania as the country launches the Mkoba Private Equity Fund – the first ever private equity fund in the country.
The $300 million (about Sh480 billion) Private Equity Fund aims to fill the gap in the private equity market in Africa by providing growth capital to portfolio companies not on the radar most funds.
In Tanzania and other parts Africa where is focusing on (Ethiopia, Tanzania, Rwanda, Mozambique, DRC, , Cote d’Ivoire, Liberia and ), the fund will support SMEs targeting equity investments ranging from $1.0 to $15 million (about Sh1.6 billion to Sh24 billion).
Speaking at the launching the fund yesterday, Jakaya Kikwete said the launching of the fund is of significant importance as will “provide growth capital for -growth small and medium sized companies.”
He noted investor’s confidence continue to grow in the country as Foreign Direct Investments (FDI) rose by 38 percent at a point when FDI flows had reduced globally.
However, while the pointed out the opportunity for the private sector to work with the government in transforming the country’s economy, CEO for Infotech, Ali Mfuruki said the government was yet to take the private sector seriously as its prime partner.
“We to start talking … Tanzania will be built by Tanzanians and not foreigners,” he said.
Tanzania Private Sector (TPSF) Chairman Dr Reginald Mengi also challenged SME owners and upcoming businesspersons to take risk in investing in the country.
“In business we take risks but not of investing in other countries … I will only continue to invest in country,” he said.
Economists and business leaders have said Tanzania has all to become the continent’s powerhouse if maintains political and order. (VENTURES AFRICA)