Market Focus

Primarily Ethiopia, but will consider strategic investments by Ethiopian companies into the region--Djibouti, Kenya, Tanzania, and Uganda--or by regional companies into Ethiopia.

Preferred Sectors

The sector presents numerous growth opportunities as Ethiopia seeks to establish itself as a major manufacturing hub within Africa. A large and increasingly educated labor pool, competitive wage rates, low energy costs, improving business operating conditions, and a growing number of industrial parks with ready-to-use facilities are all providing suitable conditions for investment in manufacturing. Cepheus intends to focus on opportunities in a range of import substituting industries as well as in manufacturing companies geared towards export markets.

Despite a large agricultural base, value addition in this sector has so far been very limited in Ethiopia. Cepheus stands ready to support companies that are engaged in agro-processing activities and that show strong prospects for substantial growth—thereby boosting demand for rural producers, serving local or global consumers, and substituting a wide range of currently imported food items.

With Ethiopia’s large population, growing urbanization, and steadily rising disposable incomes, Cepheus sees attractive opportunities in various service sectors, including education, healthcare, business services, tourism and the digital/technology space.

Value Add

Supporting growth in volumes, products, geographies, and exports. Operational improvements in management techniques, HR development, financial management, corporate governance, as well as in environmental and social standards.

Target Companies

Growthalready established medium to large companies that are or have the potential to become leaders in their sector
Underdeveloped Companiescompanies with underutilized capacities but operating in attractive market segments and showing a clear path to growth
Underserved Sectorsgreen/brownfield projects where the sponsors have extensive experience in the relevant sector

Portfolio Value Creation

  • Monitor market trends and competitive landscape and advise portfolio companies on strategic implications
  • Analyze portfolio company product offerings to determine the need for product line expansion/reductions
  • Review upstream and downstream value add opportunities
  • Coaching and mentoring leadership to enhance efficiency and productivity
  • Increase the portfolio companys' corporate social responsibility engagements
  • Support in implementing operational efficiencies & margin expansion, HR capacity development, corporate governance, an introduction of modern-day management and market knowledge
  • Support in the understanding of local market dynamics