The Prepaid Economy: African Edition

Private equity funds in Africa and the developing world are set for increased investment from the Norwegian Investment Fund for Developing Countries (Norfund), which has announced plans to double its portfolio over the next five years.

Norfund managing director Kjell Roland said the institution is anticipating huge growth over this period that will boost its portfolio. This will be largely drawn from reflow and profits from the portfolio, as well as significant annual capital injections. At the moment, Norfund’s portfolio stands at $1.5 billion, invested through its four investment areas: financial institutions, SME funds, renewable energy, and industrial partnerships.

Mr Roland argued that in the wake of current economic crises, private equity funds and other financial intermediaries in the region are more likely to attract capital from international markets.

“Any investor, especially those investing the pensions of future generations, should look to East Africa for its growth opportunities and financial returns,” he said, adding that industry players need to be ambassadors of private business and growth.