DEG, a German Company, Invests $10 Million USD in Schulze Global Ethiopian Growth Fund (Video)
DEG of Germany Invests $10 Million in Ethiopian Growth Fund
DEG (Deutsche Investitions und Entwicklungsgesellschaft mbH) announced that it will invest 10 million US Dollars into the Schulze Global Ethiopian Growth and Transformation Fund I, a private-equity fund focused solely on Ethiopia. The fund has a strategy of targeting small and medium enterprises and plans to deploy between 1 million to 10 million US dollar per investment.
The main aim of the fund is to invest in small businesses which have the potential to be industrial leaders in Ethiopia.
“The fact that DEG wants to invest in Ethiopia is a testimony of Ethiopia’s promise and shows that there are tremendous opportunities in the country” according to Gabriel Schulze, the founder of Schulze Global Investment.
DEG will be amongst the first international investors to highlight Ethiopia as a destination for investment as well as offering much needed financing by investing in the Schulze fund noted representatives of the company.
Schulze announced the creation of a $100 Millions USD solely to invest in Ethiopian growth companies.
It is expected that the fund will provide urgently needed access to long term risk capital investments for growth particularly for Small and Middle Enterprsies.
Education, cement manufacturing, oil and gas exploration are the four sectors Global Investment has already invested in.
The company is different from others because it deals with on a national basis with a team and an office because it does not to have a single office coordinating efforts for different countries said Schulze.
It is to be remembered that Schulze Global Ethiopia has signed a 15 million USD deal with UK’s Development Financial Institution and has maintained a professional investment in Ethiopia since 2008.
DEG, as the development company is known, is a unit of KfW Bankengruppe, the state-owned German development bank.
Source: Capital Ethiopia