Tanzania has launched the Mkoba Private Equity Fund wherein locals were encouraged to invest more in the country’s first ever PE firm.
The Private Equity Fund has been aiming towards filling the gap in the African equity market. Mkoba has been driven to provide growth capital to portfolio companies. It has been looking at small to mid-sized enterprises which aims at investments from $1.0 million to $15 million.
At the launch of the PE fund yesterday, President Jakaya Kikwete said that the private equity fund plays an important role was it would “provide growth capital for high-growth small and medium sized companies.”
The President added that the confidence of investors in Tanzania has increased by 38 percent as shown through the country’s Foreign Direct Investment even as FDI flows globally decreased.
On the other hand, despite of the president’s pointing out to the chance of private firms working with the government for the anticipated change in the country’s economy, Infortech CEO Ali Mfuruki said that the government should take the private sector seriously as its main partner in the development of the country.
Mfuruki said, “We need to start talking … Tanzania will be built by Tanzanians and not foreigners.”
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