Zoscales Partners: Best Sustainable Investment Strategy East Africa 2021
Zoscales Partners connects international investors with high-growth, high-impact opportunities in East Africa. The firm combines private equity investments, knowledge sharing and scalability support to fuel SME growth. Zoscales targets industries with attractive exit strategies and a compound annual growth rate of 15 percent or better. The three core divisions are healthcare, fast-moving consumer goods, and materials. Its first $75m fund was launched in 2017, with five investments done so far. The most recent addition was a 2020 investment in Ethiopia’s first private-sector MRI provider, Pioneer Diagnostics Center (PDC). During the course of 2021, the fund is expected to make its last two investments before launching its second fund. Zoscales Partners identifies six SDGs where its operations have the most impact and offers training, workshops and scholarships. It finances clean water and sanitation projects, integrates climate action across investments and catalyses the development of sustainable cities and communities. The firm has generated high returns for investors while creating over 500 quality jobs across East Africa. It expects to double job creation before year end and focuses on diversity by hiring more female employees to the companies . Zoscales has a Danish origin story, following the friendship of cofounders Ashenafi Alemu, of Ethiopia, and Jacop Rentschler, of Denmark. That style of collaboration continues, with a large institutional investor base in Europe and a network of regional partners. Fundraising is underway for Zoscales’ second fund, with a $200m target and continued focus on core industries. The firm favours strong ESG initiatives — which helps it secure funding from institutions including the International Finance Corporation and World Bank. The CFI.co judging panel congratulates repeat programme winner, Zoscales Partners, on the 2021 award for Best Sustainable Investment Strategy (East Africa).
