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Press Release

Thursday, June 7, 2007

OPIC to Establish Social Development Fund for Investments in Africa

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) today issued a call for proposals to establish for the first time in its history an investment vehicle that provides both social and economic benefits, creating a private equity investment fund designed specifically to improve African employment, health and overall well-being through profitable investments in African companies.

OPIC issued the call to fund managers to help establish one or more Africa Social Development Funds. The fund(s) will invest in sectors capable of delivering social as well as economic benefits, such as small and medium-sized enterprises, health care, education, water and sanitation, infrastructure, and energy access, including green technology, and rural and renewable energy.

OPIC anticipates that it will provide debt or partial guarantees for each selected fund, the balance to be raised through a blend of public and private capital from private institutional investors, foundations, socially-oriented investors, international financial institutions, or other interested parties.

“OPIC-supported investment funds have stimulated the growth of dozens of companies in emerging markets throughout the world. Our intention with this new social development fund is to use that model to target sectors that will have a significant impact on African development,” said OPIC Executive Vice President John Simon. “Understanding that the fund will reward innovation, we are reaching out actively to leading investors, fund managers, foundations, and development practitioners to support its best realization.”

The Africa Social Development Fund is part of the Africa Financial Sector Initiative announced by President Bush on May 31 prior to his trip to 2007 G8 conference. The initiative is focused on encouraging capital flows into African markets.


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.