Kenya-based private equity firm Catalyst has acquired a 50 per cent stake in Ethiopian food and drink maker Yes Brands to tap into the Horn of Africa nation's large population and fast economic growth, the company said.
The Mauritius-registered Catalyst Principal Partners raised $125 million last year for its Catalyst Fund 1 to be invested in consumer growth-related opportunities in the region with some of the world's fastest growing economies.
Paul Kavuma, Catalyst's chief executive, said it would build on the strength of Yes Brands in mineral water bottling by investing in operational capacity and product distribution.
The value of the deal was not disclosed due to confidentiality clauses in the agreement.
Officials in Addis Ababa said last year they expected Ethiopia's economy to expand by 11 per cent in the 2012/13 fiscal year.
Catalyst is also looking to invest in east Africa's property market, Mr Kavuma said last month.