CAPE TOWN, Feb 28: French President Nicolas Sarkozy announced a 2.5 billion euro ($3.8bn) initiative on Thursday to finance nearly 2,000 companies and create 300,000 jobs in Africa over the next five years.

“I want France to contribute directly to the creation of African companies that will generate jobs,” he told a joint sitting of the South African parliament on the first leg of a two-day state visit.

“Overall, this initiative will mobilise two-and-a-half billion euros over the five-year period, which will be used to directly or indirectly finance nearly 2,000 companies and create 300,000 jobs.”

The initiative, to be executed by the French Development Agency, would see the creation of a 250-million-euro investment fund that would acquire holdings in other funds, and a 250-million-euro guarantee fund to help small enterprises access bank credit and capital.

The third phase would comprise a two-billion-euro commitment to “support the private sector,” he said.—AFP