By PETER EGWUATU
Africa Private Equity and Venture Capital Association, AVCA has disclosed that it has invested about $10 million (N1.6 billion) into private firms in Nigeria, just as it called on the governments to create an enabling environment for businesses to strive in Africa as a whole.
Mr. Okey Enelamah, Chief Executive Officer, African Capital Alliance, who disclosed this at a press briefing heralding the association’s 11th Annual Conference to be held in Lagos, said, “With reported investment figures increasing to close to $3 billion in 2013, private capital in Africa supports hundreds of local businesses looking to build to the potential.”
According to him “ By nature, private capital in Africa is chiefly growth investment, unlike the typical perception of private equity in more developed markets. It is an essential service provider of jobs and boosts local economies. So, our interest is in private firms with potentials for growth. We assist the private entities in training, providing finances and even nurture them to a level that they can go for public listing on the stock exchange. We know there are higher risk inherent in this kind of businesses but we do due diligence to ensure that we look at those companies that have potentials in various sectors of the economy. We know that there is liquidity, business and environmental risks and all these are considered when going into an investment.”
In her own remark, Tokunboh Ishmael, Co founder & CEO, Alitheia Capital said, “AVCA supports Small and Medium Enterprise (SMEs) they provide larger employment and are catalysts for economic development.