Oasis Africa Fund
- Active: Active
- Region: Africa
- Country: Regional
- Sector: Investment funds
- Year: 2017
- Domicile: Ghana
- Instrument: Fund
- Commitment (MNOK) as of 31.12.2018: 42.8
- Original Commitment (MNOK): 42.8
Oasis Africa Fund is an investment fund targeting small and medium sized enterprises in Ghana and Côte d'Ivoire. With equity investments, expertise and support, the Oasis Fund is helping small and medium sized companies to become viable, to grow and to generate jobs.
West Africa became a new priority region for Norfund in 2016. In most West African countries, long-term financing of equity capital is virtually non-existent in the SME sector.
Typically, SMEs lack collateral, have limited cash flows, and face difficulties when proving their creditworthiness. Many face serious constraints in accessing debt financing from banks or other financial institutions. SMEs are a cornerstone of job creation and improving access to capital for SMEs in this region is therefore in keeping with Norfund’s strategy.
Oasis Africa Fund is one of Norfund’s first investments in West Africa. This is a good investment that will promote access to capital and competence to rapidly growing businesses in West Africa,͟ says Norfund’s CEO, Kjell Roland.
Oasis Africa Fund invests in five key sectors: private education, financial services, healthcare, food services, and housing and hospitality. One of the Fund’s recent investment is Everpure Ghana Limited, a company that produces high quality purified drinking water for Ghana and the West African region.
Investing in a water bottling company in Ghana
Established in 2008, Everpure has grown significantly year-on-year and is now one of the leading water bottling companies in Ghana. The company produces, distributes and markets purified drinking water.
The Oasis Africa Fund’s recent investment will support Everpure’s construction of a third factory. It will also help the company acquire additional equipment and meet its need for working capital.
Since 2008, the number of employees has increased from 7 to 450 persons. In the coming years, Everpure plans to generate more than 1,000 direct and indirect jobs through the creation of formal water vendors and distributors.
This transaction underscores our strategy of investing in businesses on the cusp of significant growth and operating in essential service sectors. Our expectation is that this transaction will improve the supply of clean drinking water to the population, since more than 70% of the company’s product is targeted at lower-income earners,͟ says Investment Manager of Oasis Capital, Mr Richard Kwame Siaw.