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Private equity fund targeting Angola completes first closing

Fundo de Investimento Privado Angola, a private equity fund targeting small and medium sized enterprises in Angola, has held its first closing.

The European Investment Bank, the long-term lending institution of the European Union, is to provide USD6m for the USD28m fund.

Other investors are Danish International Investment Funds, Banco Privado Atlântico, Banco Africano de Investimentos and Norfund.

European Investment Bank vice president Plutarchos Sakellaris (pictured), responsible for Africa, Caribbean and the Pacific, says: "We are pleased to work closely with FIPA to enhance equity finance available for Angolan small and medium sized companies, a crucial issue for companies across Africa. We welcome FIPA’s significant contribution to Angola’s economic development and long-term recovery."

Tiago Laranjeiro, managing director of Angola Capital Partners, is optimistic about the prospects of investing in Angola, one of the world’s fastest growing economies over the last few years.

“We see plenty of potential within our pipeline companies and the economy in general. Sectors outside the dominant petroleum sector are in special need for growth and expansion capital,” says Laranjeiro. “Our second closing, to be completed by year-end 2010, will aim to raise FIPA’s capital up to USD100m so that we can fully capture the good investment opportunities we have at hand.”

Norfund has initiated the fund together with the local partner Banco Africano de Investimentos.

Kjell Roland, chief executive of Norfund, says: “We believe this is the time for private and institutional investors to start looking beyond traditional markets. There are many good entrepreneurs in Angola. They are in need of strong financial partners that, in addition to financial capital, can provide long term partnership and support. We find similar demand across the continent and hope the story of FIPA can spark the interest of other investors in the African markets.”

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