SGI Ethiopia Growth and Transformation Fund

Ethiopia Food and agriculture, Education, Business services, Health

SGI Frontier Capital (previously Schulze Global Investments Limited) is a private equity firm that specialises in emerging growth and growth capital investments, primarily in Asia and Africa. The Singapore-based firm has offices in Ethiopia, Mongolia, Cote d’Ivoire and Georgia.

The Schulze Global Ethiopia Growth and Transformation Fund I, (Ethiopia fund) was launched in 2012 to focus on small and medium-sized enterprises (SMEs) in Ethiopia. 

It is the first private equity SME fund focused on the country and is managed from Addis Ababa by an experienced team. The fund will explore various sectors including agri-processing, manufacturing, education and healthcare.

Our investment

CDC invested $15 million in the Ethiopia fund in 2012, alongside other European DFIs including the Netherlands’ FMO and  Germany’s DEG, and other institutional and fund-of-fund investors.   Our investment will provide much-needed growth capital to SMEs in this low-income country, particularly for smallholders and agribusinesses.

Expected impact

The private sector in Ethiopia is young, and entrepreneurs and enterprises are in dire need of finance. The Ethiopia fund aims to highlight the country as an investment destination and provide growing private sector businesses with access to funding. 

Our investment will support the growth of Ethiopian companies (transform the country’s agricultural and food production). In January 2016, SGI acquired a 45 per cent stake in MB PLC (Family Milk), a leading dairy processor in Ethiopia. By implementing international best practices in dairy processing and product development, it aims to build the country’s leading dairy company including launching the country’s first UHT milk processing plant.

In addition to providing capital, the fund also supports the growth strategy of the SMEs in which it invests, for example, by advising management teams, supplementing technical expertise, and taking an active role on boards.  The fund manager previously invested in three local companies which were then transferred to the fund: a coffee-roasting company, a cement factory and an international school.

Environmental and social aspects

We worked closely with the fund manager to develop and implement an Environmental and Social Management System (ESMS) for this first-time fund.

Key facts


Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

Africa, East Africa

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

Business services, Education, Food and agriculture, Health
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

Intermediated investment
Fund manager:
Schulze Global Ethiopia GP
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

January 2013

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.


This is the investee company’s place of incorporation; or a fund’s jurisdiction.

Cayman Islands

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Flipper Kindergarten Plc

Flipper is a leading multi-campus international school in Ethiopia, providing nursery, preparatory, first, and second-grade education.

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Ethiopia Africa, East Africa Education February 2013 Active
Jalannera Coffee Export & Coffee Farm Plc

Bagersh has been a leading supplier of high-quality roasted coffee for the local market for over nine years. It hopes to the first fully integrated high-end roasting business of scale in the country, having recently acquired a roasting and packaging facility.

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Ethiopia Africa, East Africa Food and agriculture February 2013 Active
National Cement Share Company

National Cement is one of the largest privately owned cement companies in Ethiopia, operating two cement production plans in Dire Dawa with a total production capacity of approx 1.2 million tons per year.

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Ethiopia Africa, East Africa Business services February 2013 Active
Kaliti Food Share Company

Kaliti Food S.C. is the only food-processor based in Addis Ababa that is diversified across four concentric and complimentary market concepts ranging from Milling, Biscuit Production, Pasta/Macaroni Production and industrial bakery.

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Ethiopia Africa, East Africa Food and agriculture December 2013 Active
SA-Med Plc

Sa-Med manufactures intravenous bags, intravenous administration sets and other medical device sterilisation services.

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Ethiopia Africa, East Africa Health June 2014 Active
Family Milk

Leading milk brands and fastest growing dairy processors in Ethiopia.

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Ethiopia Africa, East Africa Food and agriculture January 2016 Active
Origin Water

Origin Water is the only mineral water producer in Ethiopia. The company produces different sized bottles of mineral water and distributes the products to a diversified customer base across Ethiopia.

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Ethiopia Africa, East Africa Food and agriculture May 2016 Active
Afri Flowers Holding B.V. (Afriflora)/Flamingo Horticulture Ltd (Flamingo)

Afriflora cultivates, produces, and sells sustainably-grown roses, at three rose farms. The farms have a total surface area of around 650 hectares, which is the equivalent of 1,300 football pitches, and grow over 65 different types of roses. Cutting, planting, harvesting, processing and transport are all carried out by local employees.

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Ethiopia Africa, East Africa Food and agriculture August 2018 Active

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