New Equity fund targets Rwandan market

President Paul Kagame Meeting with Dr. Frannie Leautier, Partner and Chief Executive Officer, Mkoba Private Equity Fund

President Paul Kagame Meeting with Dr. Frannie Leautier, Partner and Chief Executive Officer, Mkoba Private Equity Fund

Mkoba, a Private Equity Fund is planning to enter into the Rwandan market to introduce private equity services and work with small and medium enterprises through investing in them.

The Mkoba Private Equity Fund founder Dr Frannie Léautier revealed the company’s intention after meeting President Paul Kagame in Kigali, today.

The fund according to Léautier seeks the opportunity to support the “missing middle” by targeting equity investments ranging from $1.0 to $15 million (about Rwf680 to Rwf10 billion) mainly through providing growth capital.

Mkoba has an explicit focus on developing the African private sector: through investment in African based, managed and/or owned businesses and joint ventures between local and international entrepreneurs.

The fund targets fast growing countries undergoing liberalization and post-conflict countries rebuilding their economies including: Cote d’Ivoire, Democratic Republic of Congo, Ethiopia, Liberia, Mozambique, Rwanda, Tanzania, Sierra Leone, and South Africa.

Léautier says that the fund focuses on consumer demand driven sectors, including: agri-business and -processing; services and manufacturing; urban renewal; financial services; and innovative business ideas in climate change and mitigation, renewable energy and ICT.

While holding discussions with the President, Léautier said that they talked on how to do investment in the Rwandan context and the kind of investments that will be important to do.

 “I have received very strong support in terms of launching these activities in Rwanda and perhaps experiencing some of the successes Rwanda has had by establishing a business.”

She says that Rwandans will benefit by investing in the fund and also the fund will help businesses that are looking for capital to grow since now getting funding from banks is becoming difficult and equity models such as this one gives companies breathing room for the companies to do expansions before they start making repayments.

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Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

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