DEG of Germany Invests $10 Million in Ethiopian Growth Fund

German development company Deutsche Investitions und Entwicklungsgesellschaft mbH said it will invest $10 million in Schulze Global Ethiopia Growth and Transformation Fund I, a private-equity fund focused solely on the Horn of Africa nation.

The capital for the fund, owned by Schulze Global Investments and created this year, will be invested in small-and medium-sized enterprises in Ethiopian industries including agro- processing and manufacturing, DEG said in an e-mailed statement today in Addis Ababa, the Ethiopian capital.

Schulze plans to eventually have $100 million available for investment in Ethiopian businesses, it said.

DEG, as the development company is known, is a unit of KfW Bankengruppe, the state-owned German development bank.

To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net