The Norwegian Investment Fund for Developing Countries (Norfund), the Netherlands Finance Development Finance Company (FMO) and Dutch bank Rabobank have teamed up to establish a new African investment firm named Arise. Through the new institution, the three European finance institutions will support around ten African banks.

With $660 million of assets, Arise will start operating on January 1, 2017, in more than 20 nations. This amount should rise to $1 billion as the company expands to other African markets.

Arise will be taking and managing minority stakes in African financial services providers or FSP. The firm aims to develop strong and steady FSP that will serve SMEs, the agricultural sector and people with no access to financial services.

For now however, no detail was released regarding capital distribution within Arise, or about its operational management.

Let’s recall that Norfund’s major investments in Africa include a 12.5% stake in the Turkana Lake wind park in Kenya, Africa’s largest wind project, and a stake in Kenyan banking group Equity Bank. The group also invested in solar power projects in Rwanda, biogas production in South Africa and in some banks in Uganda and in Zimbabwe.

As for Rabobank, it provides universal banking services in 43 African nations in Europe, Africa, Asia and South America. It has a representative office in Kenya and is present in Zambia, Tanzania, Rwanda and Mozambique.

In Africa, FMO is present in 9 private equity funds.

Alain Okpeitcha (Intern)