Ethiopia has one of the fastest growing economies in Africa. According to the African Development Bank, GDP is projected to grow 6.2% in 2024. However, it remains one of the poorest countries in the region, with a per capita gross national income of $1,020. Drought and internal conflict have further hindered economic development. 

Economic exclusion has been particularly acute for women. Labour force participation is 74.2% for women as opposed to 86.5% for men. Women make up less than one-third of skilled workers (32.6%) and just over one-quarter of managers and senior officials (26.5%). 

Cepheus Capital is an Ethiopian private equity firm that invests in medium to large companies in manufacturing, agro-processing and service sectors, including education, healthcare, business services, tourism and the digital/technology space. The Fund was established in 2016 by its Ethiopian managing partners Berhane Demisse and Kassahun Kebede. Other investors in the Fund include BII (British International Investments), European Investment Bank, International Finance Corporation, and Norfund. 

SEDF expects that by 2029 Cepheus will have:  

• Created over 2,400 direct jobs (> 45% women) 
• Indirectly contributed to 60,000 livelihoods via additional income  
• Deployed 30% of its investments into women-owned businesses  

In the long term, Cepheus will help to grow the SME sector in Ethiopia, crowd in additional capital, and support the macro economy, including through exports, tax generation and local procurement.  

SEDF’s investment in Cepheus in 2019 was part of Open Society’s broader commitment to support Ethiopia’s democratic and economic development. Open Society has had a long-term commitment to advancing peace and security, and accountability for human rights violations in Ethiopia. SEDF's investment aims to harness Ethiopia’s growth, and support the scale up of emerging companies, in ways that are more inclusive and equitable for low-income groups and women.