Africa regional project 690-0514 · 1994–1998 · private sector competitiveness · Coopers and Lybrand

Project to create the Southern Africa Enterprise Development Fund (SAEDF) as a mechanism for providing financial services to disadvantaged indigenous small- and medium-scale enterprises (SMEs) in southern Africa on a cost-effective and financially sound basis. USAID will provide $110 million over 4 years to finance capitalization of the Fund, operating expenses, and TA. The SAEDF will be incorporated as a not-for-profit U.S. investment corporation headed by a Board of Directors, all of whom will be either African or American and selected in consultation with USAID, which will also attend all Board meetings in an active advisory capacity. The SAEDF's primary activity will be to invest risk capital in principally indigenous and disadvantaged south African SMEs, with a focus on profitable opportunities that contribute to increased employment, improved labor or management skills, enhanced access to capital for those lacking it, and/or increased and diversified ownership. However, the SAEDF may make up to 20% and even more of its total investments in developmentally important and (financially more profitable) non-SMEs. The SAEDF will also provide investees with TA as part of the total

Source: DEC abstract, PD-ABP-426 (1994). The source's own text.