The Oasis Africa Venture Capital Fund (OAF) has been recapitalised to US$27 million with the support of new funds from three institutions.
The recapitalisation is the second phase of OAF, which invests in small and medium enterprises in Ghana and Cote d’Ivoire.
While the Dutch Good Growth Fund (DGGF) invested US$5 million into the fund, the International Finance Corporation (IFC) committed a total of US$7 million with the remaining US$15 million coming from a local investor base of five institutions and individuals.
A press statement from the OAF said the money would target SMEs that provide essential services in the areas of education, financial services, housing, healthcare, food services and hospitality, the release added.
It explained that investments were expected to be approximately 50 per cent debt and 50 per cent equity, depending on the industry and the country.
Established in 2009, Oasis Capital provides risk capital in the form of equity, quasi-equity and profit-sharing instruments to SMEs in Africa.
It is currently managing the Ebankese Venture Fund (EVF), a US$11 million fund that invests in education, financial services, housing and manufacturing sectors in Ghana.
The Ebankese Venture Fund has fully invested in eight SMEs in Ghana across housing, private education, financial services and related sectors.
The statement said OAF would continue to operate in the same SME space in the two countries.
The CEO of Oasis Capital, Mr Matthew Boadu Adjei, indicated that Oasis Capital expected DGGF and IFC’s investments to catalyse the fund to receive additional commitments from similar institutional investors and DFIs.
This will put it in a better position to achieve its goal of reaching US$50 million in commitments by the Final Fund Close in June 2017, he said.