March 14, 2008

Germany to invest 200 ml Euros in Rwanda

By David Barouski, East African Business Weekly

The African Development Corporation (ADC), a newly created Germany company seeks to invest some euro200million (305.4m) in Rwanda’s financial sector. The company is a subsidiary of Altira Group (AG) one of the leading independent asset management companies in Germany.

In a press statement issued by the Altira Group (AG) in Germany after creating ADC on January 22, the Germany Company noted that there will be a particular investment focus in Rwanda, which is one of the most booming countries in Eastern Africa with annual growth of over 6%.

ADC is yet to sign contracts with Rwandan companies allowing it to own some shares in them so as to increase their investment capital in the country.

The founder of the company Mr. Christian Angermayer who was in Rwanda with other Germany investors last week, told East African Business Week that this year; the company seeks to invest in the country some $130million ahead of fund size of Euro200million.

"I really love Rwanda, people are very nice and we are interested in investing in Rwanda," Mr. Angermayer said, adding that the company is looking at banking and insurance.

The delegation included the former World Bank president Mr. Paul Wolfowitz. The African Development Corporation (ADC) is not only eying Rwanda but also other East African counties. "We want to invest in other East African countries too. We are using Rwanda as a hub to invest in her neighboring countries," Angermayer said.

"ADC will open its first offices in the capital, Kigali. From there it should be possible to gain access to the neighbouring countries," a statement from the company reads in part. President Kagame who has attracted American, European, Asian and now African investors to the country believes that entrepreneurship and private development companies are much more needed in Africa than the aid.

"It is entrepreneurship and private investment that create prosperity, not assistance," Mr. Kagame told the Germany Focus magazine in Kigali recently. "That is why we welcome Altira’s strategy as one of the first large European private equity investors in our region and in Rwanda."

ADC is a business development company with private funding, targeting development and value creation for East African companies. The company has a private Equity Boutique focusing on Africa- African Development GmbH.

Since its launch, the fund has seen its first fund with euro15million ($22.9million) put in place and the other euro100million ($153.1million) is targeted by the end of this year.