The Swiss Investment Fund for Emerging Markets (SIFEM), the Switzerland development finance institution, has committed $7.5m to the Synergy Private Equity Fund.

The Fund is the first to be managed by the investment team of Synergy Managers, a private equity firm established in 2014 by Nigerian finance professionals.

“By supporting a first-time Fund promoted by local professionals, SIFEM supports the growth of the local financial sector,” the DFI said.

The Fund is a generalist fund focused on expansion and growth capital in Nigeria (up to 75%) and Ghana (at least 25%).

The Fund has a target size of $75m and will focus on a number of promising sectors, including agricultural processing, consumer products, power, IT, manufacturing and non-bank financial services, amongst others.

“Nigeria and Ghana offer attractive growth prospects but face numerous development challenges; both countries score poorly on the UNDP’s Human Development Index. With an investment in Synergy, SIFEM will support SMEs across a number of sectors,” SIFEM said.

The Fund will create formal jobs which offer better working conditions to employees and also serve to increase governments’ revenues through tax receipts.

“Investing in capital-constrained SMEs contributes to private sector development and has significant effects on the creation of local jobs, revenue and income. In both countries a large part of the population is engaged in informal employment,” said SIFEM. 

Other public investors in the fund include EIB, IFC and CDC.