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10-Sep-2004
FOR IMMEDIATE RELEASE
Friday, September 10, 2004
For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744
OPIC BOARD APPROVES $250 MILLION FOR TWO INVESTMENT FUNDS IN AFRICA
WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) approved $250 million in financing for the establishment of two private equity investment funds designed to support the growth of businesses in sub-Saharan Africa. Among their many benefits, establishment of the funds will fulfill a goal of the Africa Growth and Opportunity Act.
OPIC will provide an investment guaranty of up to $100 million to support the first fund, to be managed by Washington, D.C.-based Emerging Market Partnership (EMP), one of the largest private equity managers focused on the emerging markets and currently the principal advisor to the $407 million AIG African Infrastructure Fund. EMP's Africa Fund II will target investments in infrastructure and related industries in Africa, including telecommunications, oil and gas, power, transportation and agribusiness. The fund may also invest in the media, financial services and manufacturing sectors.
OPIC will provide up to $150 million toward the establishment of the second fund, which will promote the expansion of medium-sized enterprises in sub-Saharan Africa, with an emphasis on South Africa and the manufacturing and services sectors. Called Ethos Fund V, it will also support South Africa's effort to encourage black economic empowerment, as well as promote opportunities for women and low-income individuals through an arrangement with an investment firm, Sphere, which supports rural development and women-owned businesses.
The fund will be managed by Ethos Private Equity, one of the premier investment managers in Africa, having managed five successful private equity funds in South Africa since 1984.OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.
OPIC's political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency's 32-year history, OPIC has supported $150 billion worth of investments that have helped developing countries to generate over 690,000 host-country jobs. OPIC projects have also generated $66 billion in U.S. exports and created more than 257,000 American jobs.