May 2nd, 2016: In the latest edition of African Banker, Andrew Brown, ECP’s Managing Director and CIO, contributed his thoughts to a special report on the positive role Development Finance Institutions (DFIs) have played in Africa’s economic development. The magazine recognized the importance of DFIs’ recognition of the viability of investment opportunity in Africa and provision of long-term capital, resulting in the development of some of the continent’s best-known brands.
Brown discussed how DFIs have contributed to long-term development of the continent, especially in terms of being able to offer concessional finance, which helps businesses grow. “At this point in time, this financing is more important than ever,” he said. The article referenced ECP’s 2009 purchase of a stake in Orabank alongside three DFIs. This partnership allowed the bank to grow substantially, “taking the bank from local player to regional heavyweight” by 2015.
Brown also commended DFIs for the catalytic role they have played in developing African private equity as a distinct asset class. “Since our conception back in 2000, we have moved up the curve, starting with smaller minority deals to larger, control deals,” he said. “We’ve been able to do this precisely through the backing of DFIs. Our subsequent funds are larger than the last and we are now seeing a wider variety of investors come on board as more become comfortable with African assets.”
To read the full article please click here.