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| Norfund launches the first investment company in South-Sudan |
Norfund has established the investment company Kinyeti Venture Capital Ltd. in cooperation with the Swedish sister fund Swedfund.Small and medium sized enterprises in South-Sudan does not have access to finance. Kinyeti Venture Capital will offer companies in the new country loans and equity, and make investments of between 275 000 and 5 million NOK. Both Norfund’s and Swedfund’s regional representatives have already identified a number of possible projects, and have initiated dialogues with local partners about these. Today the South-Sudanese import everything which is consumed in the capital Juba and in the rest of the country, and the potential for companies producing even the simplest consumer and agricultural products are therefore great. We expect that the first investment will be made in the first half of 2012. The project has a two year trial period. The official launch was made in Juba on January 31st, with the board of Norfund present. Kristin Clemet, the director of Norfund’s board, said at the launch: “We hope the investment in Kinyeti Venture Capital will result in many new companies in Southern-Sudan, which again can create jobs, capital and tax income” “We hope Norfund and Swedfund’s initiative will create interest among many other investors for projects in Southern-Sudan.” Both Norfund and Swedfund invests about 4 million NOK in Kinyeti Venture Capital. The Norwegian embassy in Juba will supply about 17 million NOK in risk capital. The target is 50 million USD in five years through successive capital allocations from the initial investors alongside new partners. The project is well aligned with the strategy of Norfund both to be additional and catalytic, that is to invest in countries and regions where capital is at particular need, and where Norfund can lead and get other investors interested over time. It is very important for the development of Southern-Sudan that international investors enters the market, so that jobs and income is created for the local population. According to the Norfund mandate, the fund should take the risk associated with these types of projects. The company is named after a peak in the Imatong range, and is also the name of a river. |