The Missing Middle Opportunity in Africa

6

Apr

The Summit Development Group (SDG) was recently featured in the African Banker Magazine in an article discussing the Missing Middle Opportunity in Africa. You can read the article here

“Small and medium-sized enterprises (SMEs) form the backbone of the economies of developed countries, contributing over 50% of GDP and providing the bulk of jobs. This vital sector is still very underdeveloped in Africa – mainly through lack of finance Yet the potential for banking profits is enormous.”

As an update, SDG is continuing to make progress with investors and targeting to receive approvals for first close of $40m in Q2 2011. In addition to the $25m approval from African Development Bank, SDG received conditional approval from Lundin for Africa for $2m and we are in discussions with several other investors to participate in first close.

While fundraising, SDG is continuing to actively investigate deals and is ready to deploy $35m across 4 deals  this year.  We have built up a pipeline of $392m investments across 38 deals with US$ +4b total assets in 16 countries. SDG has also worked on consulting assignments to develop strategies for banks in Kenya, the Gambia and Afghanistan.

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