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Local firms gain more than investors when private equity arrives
A sub-Saharan scramble
Private-equity investors are getting hot for Africa. Businesses there need all the capital on offer, and more
One thing successful managers agree on is that investors should not expect to fly in, do a deal and fly out again. The funds that are doing well are those with a strong understanding of local conditions and good business connections in their target countries, such as Catalyst. It looks for midsized companies (worth $5m-20m) that cater to the emerging consumer in east Africa, such as ChemiCotex, a maker of toothpaste and other toiletries it bought in 2011.
Investing with a gender lens can create financial and social impact by increasing women’s access to capital, promoting workplace equity, and creating products and services that improve the lives of women and girls.
The private equity (PE) model is increasingly being used as an instrument for sustainable growth of the private sector in developing countries.