The Aureos Africa Fund has completed a USD10m investment in HFC Bank Ghana, a commercial and retail bank based in Ghana.
The Aureos Africa Fund is managed by Aureos Capital, a private equity fund management company specialising in investing in small and medium sized businesses in emerging markets.
This investment is the 12th made by the fund.
Aureos says its investment in HFC will help ensure that the bank remains strongly capitalised as it continues the expansion of the bank’s branch network and of its lending to businesses and consumers.
As well as conventional commercial and retail banking and corporate advisory work HFC Bank also provides microfinance and mortgage finance services.
Jacob Kholi, managing partner of Aureos in West Africa, says: “Whilst HFC is already a well-established, well managed and profitable bank, there is significant scope for expansion.
“We think that a sensible and sustainable growth in their lending and deposit taking activities would be a real benefit to both Ghanaian businesses and the wider Ghanaian economy.”
Kholi says the expansion of Ghana’s small and medium sized enterprises has been hindered by a lack of adequate bank financing.
HFC Bank currently has 23 branches across Ghana and with the investment from the Aureos Africa Fund the bank plans to open additional branches.
Asare Akuffo, managing director at HFC, says: “In recent years we have enjoyed rapid growth and are now arguably the most diverse financial institution in Ghana. However, our focus has always been on providing the best possible service to our customers. Thanks to this investment by Aureos we hope to be able to expand our product offering to even more potential customers across the wider West African region. We are delighted to welcome them on board.”
