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Johannesburg - South Africa's E Oppenheimer family and
Singapore state investor Temasek Holdings have set up a $300m private equity
fund to invest primarily in consumer goods and agricultural sectors across
Africa.
The 50/50 joint venture named Tana Africa Capital will
target Africa's growing young population and also focus on agricultural
production and processing of farm produce.
"The initial capital commitment is $300m, so $150 from each partner," James Teeger, group managing director at E Oppenheimer & Son, told Reuters.
"We felt that was an appropriate amount to help the
team make five to six investments over the next few years."
The joint venture will also look at media, education and
healthcare across Africa, but not to the same extent as the consumer and
agriculture sectors.
Teeger said the fund would focus on larger economies on the
continent, but would not shy away from opportunities that crop up in smaller
economies. He declined to say when Tana Africa hoped to close its first
investment but said that it has a strong deal pipeline.
Africa is seen as an increasingly attractive investment
destination, thanks to its abundant resources, fast-growing population and
rising personal incomes.
Siemens said last year it aimed to invest $254m in Africa by 2012. Washington-based private equity group Carlyle said in March it was entering sub-Saharan Africa, targeting investments in consumer goods, financial services, agriculture and infrastructure.
