The Islamic Corporation for the Development of the Private Sector (ICD) and the Deposit and Consignments Fund (DCF) of Gabon have agreed to launch a private equity fund for SMEs in Gabon and Central Africa.
The two institutions are determined to bring a solution to the problem of capital financing for growing businesses, the missing link in the development of a dynamic economic fabric with performing SMEs.
The ICD will support the DCF to launch an investment fund that will have a positive impact in Gabon and Central Africa.
Alain Ditona Moussavou, CEO of DCF, said that the launching of an investment fund dedicated to the capital financing in favor of local and innovative SMEs/SMIs represented the missing link of a local financial sector ruled by commercial banks reluctant to give loans to SMEs.
“Often invoking the under-capitalization of SMEs /SMIs and the risks, the commercial banks in fact scarcely give loans,” he said.
He added that the partnership between ICD and DCF “will fully play its role of supporting the local enterprises, and particularly, offering to Gabon a wonderful accelerator of growth and development in terms of densification of the economic web”.
Deposit and Consignments Fund (DCF) of Gabon is a public institution of industrial and commercial activities which started in 2012 that continues the implementation of its tasks as a public financial institution, including that of becoming a long term investor and a catalyst for development.
It is positioned as an investor supporting the development of business and private initiative; it supports Gabonese companies not only downstream by offering financing, but also upstream, helping to stimulate entrepreneurship, through development initiatives.
Khaled Al-Aboodi, CEO of ICD, said that the partnership would strengthen the relationship between ICD, Gabon and Central Africa and will play a strong role that can bring Islamic finance into the development of SMEs in Africa.
Through this background, the DCF and ICD would work together in order to facilitate the support mechanism for financing SMEs.
Al Aboodi also pointed out that this approach is the illustration of the special relationship between the two institutions, and best illustrates the developmental role of the ICD.