Boston, MA 04/15/2014 (wallstreetpr) – JPMorgan Chase & Co. (NYSE:JPM) initiated a joint investment in Novastar Ventures for promising businesses in East Africa. JPM and the Department for International Development (DFID) together invested $20 million in Novastar that increases total private funding to $10 million. DFID allocated the fund amounting $15 million from its Impact Investment Fund (IIF). IIF is a £75 million funds primarily managed by CDC that use its owned capital and attracts investors to invest in businesses that support development of Sub-Saharan Africa and South Asia region.
Novastar Venture
Novastar intends to support commercial businesses in the African region that help low-income households to access quality services for their basic demands. Novastar has a well diversified investment portfolio and has already supported growing businesses in Kenya, Ethiopia and Nairobi in supplying necessary goods and services. The venture is now able to support early stage businesses to provide goods and services and jobs for the poorest people and expects to benefit more than 2 million poor families in East Africa in coming years.
Advantage over joint investment
The investment aims to develop and support small businesses that help to bring essential human needs for low-income households in East Africa. The programme intends to improve basic amenities such as housing, sanitation, healthcare and education. Moreover, DFID’s impact programme has the potential to transform lives of millions of poor people in Africa and South Asia. So, JPM along with the DFID will provide financial support to such ventures and help to improve the quality of life for poorest people in East Africa.
Conclusion
Since 2007, JPMorgan Chase & Co. (NYSE:JPM) has funded more than $50 million capital for funds making investment across Africa. It may include direct investment or in partnering with philanthropic organizations and government. JPM continues to provide solutions such as investment in Novastar to address social, economic and environmental challenges.
