Emerging Capital Partners (ECP), an international private equity firm focused on investing across the African continent, has announced a US$15mn investment in Blue Financial Services, a non-deposit taking micro lender serving 10 countries in sub-Saharan Africa.

The investment is made in the form of convertible bonds and common shares and was made through the private equity firm's US$523mn ECP Africa Fund II, established in December 2005 to exploit investment opportunities throughout Africa in sectors such as telecom, natural resources, financial services, agribusiness, transportation, and power and water.

"Blue Financial's proven business model and the opportunity for growth across sub-Saharan Africa make the company an attractive private equity investment," comments Tom Gibian, chief executive officer of ECP.

Blue Financial was established in 2001 and has grown to encompass over US$140mn in assets and 190 branches throughout South Africa, Botswana, Namibia, Zambia, Malawi, Uganda, Tanzania, Kenya, Cameroon and Lesotho. The company also plans to commence operations in Nigeria this month through a joint venture with Intercontinental Bank, one of the largest banks in Nigeria and a portfolio company of ECP.

ECP is the first private equity firm to raise more than US$1.2bn to invest in companies across the African continent.