Boston, MA 04/07/2014 (wallstreetpr) – JPMorgan Chase & Co. (NYSE:JPM) has contributed USD 20 million to the Department for International Development’s East Africa startup fund called the Impact fund.
The DFID’s Impact Fund, a CDC Group managed fund , which in turn is considered as a development finance institution owned by government of the UK, is expected to provide USD 15 million to Novastar Ventures. The money so provided is expected to finance basics necessities like health care, primary or secondary education, basic housing, and clean energy along with sanitation projects for an estimated population of 2 million people in a span of ten years.
According to Peter Scher, Head Corporate Responsibilities at the Bank, private capital is equally crucial and can act as a fillip to economic growth in East Africa and there is an increasing recognition that governmental channels and aid organizations cannot do this alone.
This contribution of JPMorgan Chase & Co. (NYSE:JPM) marks the commencement of usage of the 75 million-pound (USD 124 million) collected for the Impact Fund declared by the U.K. in 2012 with the ostensible aim of provide capital to companies and projects in sub-Saharan Africa and South Asia who are into social entrepreneurship.
As per JPMorgan Chase & Co. (NYSE:JPM)’s MD, Mr. Steve Beck, Novastarfocuses on investments in early stage businesses with a social benefit in mind, especially for the low-income households,”
The money provided by DFID would be used to accelerate the prevailing investment in platform of SpringHill Equity Partners, which is an informal investor circle making venture capital style investments in East Africa.
Novastarin recent times has invested in Bridge International Academies, which has been involved in building more than 250 schools in Kenya, as per the company statement. The Nairobi-based educational institutional chain aims to provide quality nursery and primary school education by charging its students an average of $5 a month.
