IFC, a member of the World Bank Group, has invested $13.5m in the West Africa Ventures Fund (WAVF) to promote food security, economic recovery and job creation in Liberia following the protracted Ebola crisis.

The Mauritius-registered investment Fund was developed under the SME Ventures Program for investments in Liberia and Sierra Leone.

The fund targets small and medium enterprise equity investments, and aims for commercial returns.

IFC announced Friday, April 10, the launch of a local rice milling plant and a modern bakery in Liberia.

WAVF owns 49% of the rice milling plant and 65% of the bakery.

Saran Kebet-Koulibaly, IFC Director for West and Central Africa, said: “New projects created through funding by the West Africa Venture Fund demonstrate the positive impact of IFC’s support for entrepreneurs, and our commitment to Liberia throughout the Ebola crisis.”

“By promoting the growth of local businesses and entrepreneurs, these projects will stimulate private sector activity and job creation.”

The FABRAR Liberia rice mill in Margibi County will purchase rice from local growers, parboil and mill it for sale on the local market.

The financing from West Africa Ventures Fund enabled the mill to increase its capacity from one ton to 30 tons per day.

The Hope Bakery Liberia in Paynesville is a facility that provides bread and other confectioneries to consumers at affordable prices.

The bakery recently moved to a new facility, which features modern equipment in a standardized set up.

President Ellen Johnson Sirleaf of Liberia presided over the launch of both facilities.

The SME Ventures Program is an IFC initiative targeting small and medium enterprises in eight countries globally, including Liberia.

With CORDAID, one of the largest development aid organizations in the Netherlands also contributing $4.5m in October 2014 to WAVF, the total funds under management amount to $18m.

WAVF is raising $40m in equity from institutional and private investors, and IFC is acting as anchor with a commitment of $13.5m equity and a pledge of $2m for the BSS facility to SMEs, most of which is repayable.

The fund’s target deal size is $100,000 –$500,000 with a goal of a minimum of 40 “Bottom of the pyramid” SME Equity investments in Liberia and Sierra Leone and target returns of 25 - 30%.

The fund is managed by Unique Venture Capital Management (UVC), a Nigerian-registered fund manager of SMEEIS Funds of three major Nigerian Banks.

UVC has invested over $32m in the last four years in 53 projects with eight exits and annualized average returns of over 34%.

IFC’s strategy in Liberia is to support investment climate improvements and small business growth, and to encourage investment in infrastructure, and help strengthen the financial sector.

As part of innovative advisory programs in Liberia, IFC has helped Liberia establish a modern Commercial Code and Court, design a policy to support micro and small and medium enterprises, and has launched its Business Edge training programs to support small business growth.