AfDB approves $50m equity investment for US-based Carlyle’s first fund in sub-Saharan Africa

The Board of the African Development Bank (AfDB) has approved an equity investment of $50 million into the Carlyle sub-Saharan Africa Fund, a statement from the Bank March 2, 2012 has said.

“The Carlyle Fund will balance our equity portfolio to allow additional investments in riskier market segments,” said Tim Turner, Director, AfDB Private Sector operations.

The fund is the first investment vehicle that the US-based private equity firm the Carlyle Group has raised to pursue its geographical expansion into sub-Saharan Africa.

One of the top global private equity players, the AfDB said the Carlyle Group has been watching the increased political stability and rapid growth of countries like Ghana, Tanzania, Botswana and Benin. It has described these countries as attractive places to allocate capital, in addition to South Africa, Nigeria and Kenya which are the Fund’s initial investment anchor countries.

The AfDB indicated that Carlyle’s investment team has reviewed deals in a wide range of countries in the region including Angola, Botswana, Ghana, Côte d’Ivoire, Mauritius, Mozambique, Namibia, and Zambia.

Both the AfDB and Carlyle are also planning to jointly launch the “In-the-Board-Room” programme, an audio series targeted at African business students.

The AfDB said the programme will provide more than 1,000 African business students with access to messages on inspirational leadership, a sense of strategic command and lessons in crisis management.

By Ekow Quandzie