Gateway Partners, an emerging markets-focussed alternatives asset management firm, and African Export-Import Bank (Afreximbank) have joined hands to jointly establish the Africa Credit Opportunities Fund.
This is a first-of-its kind partnership between an African development finance institution and an alternative investment manager, Afreximbank said. It added that the tie-up aims to broaden and strengthen Afreximbank’s support for the continent, by enhancing the scope of intervention beyond its traditional trade finance products.
The fund will join Vantage, BluePeak, Greenpoint, Altica and Barak Fund, among others, which have raised or are in the process of raising credit funds for the continent.
The new fund will focus on the growing opportunity for structured credit instruments for businesses across the continent. It will support Afreximbank’s developmental mandate, including the promotion of intra-African trade and the development of value-added exports in Africa.
Afreximbank president Benedict Oramah said the fund will allow Afreximbank to scale its impact and offer new products to existing and new customers.
Neither Afreximbank nor Gateway Partners disclosed the target size of the fund. However, Oramah said Afreximbank will support the fund with “a significant capital commitment” and that it will seek other partners, investors and development finance institutions, within and outside Africa, to raise the fund.
Gateway Partners, which has offices in Dubai and Singapore, will manage the credit fund.
“The demand for credit across the continent is set to surge, while the supply side remains constrained,” said V Shankar, CEO of Gateway. “The ACOF will attempt to bridge this gap in a responsible, impactful and sustainable manner, while boosting trade and investment flows.”