Irish rock star Bob Geldof has raised $200 million for his “8 Mile” African private equity fund, cementing a shift in his global anti-poverty crusade from rich world debt forgiveness to promoting private enterprise.
“Africa is now a continent of extraordinary business and investment opportunity,” Geldof, who has become one of Africa’s most astute and knowledgeable economic commentators, said in a statement on Monday.
“Private equity is one way to support the enterprise and dynamism of the people of the continent and help provide the jobs and skills that are needed.”
The fund, named after the shortest distance between Europe and Africa, will invest in companies that promised to provide jobs and long-term growth.
Commerical agriculture, consumer and retail firms, health, telecommunications and financial services are among the main sectors it is looking at, the statement added.
Besides institutional and private investors, the fund’s backers include the World Bank’s International Finance Corporation, the African Development Bank and the CDC, Britain’s development finance arm.
Geldof’s announcement is the latest example of the private equity industry training its sights on Africa, home to more than a billion people and many economies growing at 6% a year or more.
US firm Carlyle Group has opened offices in Johannesburg and Lagos and is expected to announce the closing of its first Africa fund soon.
London-based Helios is likely to deploy capital after closing a $900 million Africa fund in June last year.
Boomtown Rats frontman Geldof shot to global prominence in 1980s as organisers of the Band Aid and Live Aid concerts that raised millions of dollars for African aid.
He also led a major push in 2005 to get rich countries to write off debt to the poorest African countries and double their aid spending by 2010.
MommaC
rish rock star ?????He had one single hit. A one hit wonder doesn't make you a rock star.
RobinH
You wouldn't if you ever met the arrogant snot.
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RobinH
MommaC. Maybe not, but he has done great things. Sure, only I don't like Mondays was a hit, but it was HUGE. But I respect him more for what he has done subsequently. Even arrogant people do good things. Some of the greatest artists and musicians were hardly humble.Report Abuse
MommaC
RobinHIt kept him in the limelight and prevented everyone forgetting just how little talent he had so I suppose it worked for him. Made him pretty rich on the donation proceeds too.
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RobinH
MommaC; Sure. I have never considered him much of a musician. But he started a worthwhile ball rolling. Okay, so now Sir Bob is rich.... but in my book he has earned it, arrogant or not.Report Abuse
MommaC
RobinHWell we all have different perspectives. I just got so disgusted with his attitude when he wanted promo shots but "keep those filthy things as far from me as possible". Not a great way to talk about a bunch of kids
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RobinH
Sure, I accept that. I am not privy to that information. I have not sad I like him as an individual, but I respect what he achieved.Report Abuse
MommaC
RobinHYip. Gotta respect a man who gets millions to donate then makes sure that just under 20c in every dollar gets to the recipients :)
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Ndilizinthaba
Ha Ha what a sucker this guy is. Most of the African leaders and their governments are so corrupt and all the money that is meant to go to the people is used for themselves and thus keeping the 99% poor and hungry and obedient. Instead of solving the problem at the top this guy is just making the leaders happy.Report Abuse