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Musa Capital Partners With Quadia On Impact Investment Fund For Africa

Press Release: 23 March 2014

Musa Capital Partners with Quadia on impact investment
fund for Africa

New fund backed by Credit Suisse and involving Accenture Development Partners and UNAIDS will use the development of SMEs to address Africa’s economic vulnerability to pandemics

Musa Capital has been appointed investment advisor in partnership with Quadia, a Swiss wealth and investment management company specialising in impact investing, for execution of the Africa investment strategy of the Economic Development for Health Fund (ED4HF) to be launched with US$20 million in the second quarter of 2014.

Focused around the concept that emerging markets cannot grow unless their communities are healthy, the Fund aims to finance and scale up small and medium enterprises (SMEs) delivering innovative services to bottom of the pyramid consumers in areas such as health services, financial services, information and communications technology, energy access, nutrition, and social housing.

Because the Fund seeks to have an impact on health as a trigger for development, UNAIDS will put at the disposal of ED4HF its deep health sector knowledge, its extensive geographic presence, and its impact performance skills and experience.

To assist in the development of SMEs providing relevant services, the Fund has partnered with Accenture Development Partners (ADP), the not for profit development arm of the multinational management consulting, technology, and outsourcing company. In more than 640 projects globally and hands-on initiatives in Africa, ADP has developed in-depthexperience of last mile distribution of medicines and empowerment of community health workers through e- and m-learning systems. ADP also helps SMEs integrate into larger value chains, expanding their markets and, therefore, their growth potential.

Anchor funder, Credit Suisse, will give ED4HF access to its leadership and capabilities in microfinance and impact investing developed over the past ten years through commercial funding, thematic research, capacity building, and product structuring / depository services.

“Our 18 years of investment experience, totalling $120 million across 12 countries, meshes well with Quadia’s investment in recent years of $70 million in more than 20 significantly impactful companies and funds,” says Musa Capital executive director, Richard Akwei.

“Although the term ‘impact investment’ didn’t exist when Musa was founded, we’ve always believed that the best returns come from the base of the pyramid, where the need for basic products and services is most urgent and, therefore, also where investment can have the greatest impact. We also believe that SMEs are an important vehicle for job creation and wealth generation in local communities.

“To ensure the sustainability of our investee SMEs,we have focused on incorporating them intotheir respective value chains and have gone hands-on, transferring knowledge, building skills, and identifying and making the most of synergies among portfolio companies. This is an organic and self-perpetuating growth process that benefits not just the individual companies but the investment fund as a whole. It’s an extremely attractive proposition for investors.

“For all of these reasons, we’re in an ideal position to both prepare investment strategies and memoranda and execute on them for the ED4HF. And, with ED4HF, we’re going to have the very considerable extra advantage of being able to call on the capabilities of ADP and UNAIDS. The social and economic impact this Fund will have will bring many more impact investors to Africa.”

ED4HF, which will also cover parts of South-east Asia and Latin America, is targeting a size in Africa of $75 million by the end of 2014. Based upon the Fund’s open-end structure, the managers expect the fund size to top $500 million within the next 5 years.

Follow the link below to read the article that appeared in the Business Day:
http://www.bdlive.co.za/business/financial/2014/04/15/musa-swiss-partner-to-help-smes-in-healthcare

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