The two funds launched under the Pakistan Private Investment Initiative will invest in Pakistani SMEs. USAID will provide a seed investment of $24m for each of the two funds, which will be matched or exceeded by Abraaj and JS.
USAID said it “fully expected” the firms to exceed that contribution.
USAID administrator Rajiv Shah said, “Pooled funds will initially be $100m which we expect will grow many fold into hundreds of millions of dollars in investment for small and medium businesses.”
Pooled funds will initially be $100 million which we expect will grow many fold into hundreds of millions of dollars in investment for small and medium businesses
Abraaj Group CEO Arif Naqvi said, “As one of the most experienced investors in growth markets, we are pleased to partner with USAID on this initiative and help bring greater opportunities to small and mid-cap businesses in Pakistan.”
The Pakistan Private Investment Initiative is expected to “demonstrate that investing in growth-focused enterprises can generate real profits for investors,” USAID and the firms said in the statement.
Earlier this month Abraaj bought West Africa-focused dairy products and juices maker Fan Milk International (FMI), bringing its total African investments to $2.2bn across sixty nine companies.
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