Once set up EFF will be an ideal investment facility for the public sector (Ethiopian government), international donors, Development finance institutions (DFIs) and private investment funds to deploy financing targeting the Ethiopian SME and startups though direct investments in the companies or indirectly by investing in new and existing fund managers that will diversify the investment opportunity as well as catalyze the development of the Ethiopian private capital market
IFL is in the process of accepting an Expression of Interest to onboard a professional fund management firm to set up and manage the fund
Through its FOF structure EFF targets to invest in new and existing fund managers that target Ethiopian SMEs and startups with diverse or specialized focus of sectors and stages. The Technical Assistance arm of EFF will provide TA support to develop the capacity and performance of the identified fund managers.
Through its direct financing structure EFF targets to invest in a diversified pool of growth-oriented SMEs and potentially disruptive startups.