business and investments blog

J.K LAUNCHES MKOBA PRIVATE EQUITY FUND, THE FUND IS MEANT TO BOOST SMEs CAPITAL IN TANZANIA

The Mkoba Private Equity Fund which was recently launched by President Jakaya Kikwete has been described as a true economic weapon in supporting development and growth of small and medium enterprises (SMEs).

Economists and business leaders have said Tanzania has all it takes to become the continent’s economic powerhouse, calling for political and economic stability to sustain its growth tempo.

The observation was made at a conference on ‘Investing in Africa’s Future and the Role of the Private Sector’ which was held in Dar es Salaam yesterday and attended by President Jakaya Kikwete, Prime Minister Mizengo Pinda, Former Premier Cleopa Msuya and Former National Assembly Speaker Pius Msekwa.

Also in attendance were TPSF Board Chairman Dr Reginald Mengi and BoT governor Prof Beno Ndulu, cabinet ministers, members of parliament, diplomats, politicians, entrepreneurs and academicians.

President Kikwete who officiated the Mkoba Private Equity Fund said the private sector has a chance of working with the government to transform the country’s economy.

Kikwete who hailed the country’s investment and business policies and legislations admitted that the country’s economic transformation greatly depended on the people and best business practices.
Business leaders and economists maintained that the country’s tax administration policy, natural resources, empowerment laws, plus the ruling party’s 2010-2015 Election Manifesto are significant, but were not fully implemented.

As Tanzania opens its first ever private equity fund, the Mkoba Private Equity Fund, locals have been asked to boost investment in the country. 

By offering growth capital to portfolio firms not on the radar of majority of funds, the $300 million (about Sh480 billion) Private Equity Fund seeks to fill the void in the private equity market in Africa. 

The newly launched fund will back SMEs eying equity investments ranging between $1.0 and $15 million (approx. Sh1.6 billion to Sh24 billion), in Tanzania and other African countries where it focus on (Ethiopia, Tanzania, Rwanda, Mozambique, DRC, South Africa, Cote d Ivoire, Liberia and Sierra Leone).

As Foreign Direct Investments (FDI) grew by 38 percent at a point when FDI flows had dropped globally, the President added that investor's confidence continues to increase in the country.

President J.K delivers a speech during the launching of Mkoba Private Equity Fund and opening of a Conference on investing in Africa's future and the role of private sector recently in Dar es Salaam