Proparco commits US$10m in Metier’s new investment fund

SOUTH AFRICA – Proparco, a Development Financial Institution, has committed US$10 million to Metier’s Sustainable Capital International Fund II to continue its support for renewable energy, resource efficiency and energy efficiency projects in Africa.

Metier, an investment manager based in South Africa, reached US$113 million at first close for his second sustainable infrastructure fund. Metier Sustainable Capital International Fund II is Metier’s fourth investment fund, alongside two investment funds for mid-cap companies and their first infrastructure fund.

Proparco has made an initial commitment of US$10 million. To achieve this first closure, the fund also obtained commitments from several other European development finance institutions (DFIs).

The Metier Sustainable Capital International Fund II aims at a final amount of more than US$150 million to invest in renewable energies, resource efficiency and energy efficiency across Africa, which will directly contribute to the strengthening of the private sector and to climate action in Africa. 

Projects that could be financed in the short term could create 1,700 jobs and reduce emissions by the equivalent of more than 220,000 tonnes of CO2 per year and improve the access of around 390,000 people to green energies in Kenya and Uganda. 

This investment thus contributes to four of the Sustainable Development Goals: Clean and affordable energy; industry, innovation and infrastructure; Measures relating to the fight against climate change; Decent work and economic growth.

Proparco has been instrumental in ensuring that the fund’s strategy and the fund manager’s investment decision process are fully aligned with the Paris Climate Agreement.

This transaction with Metier is the second of the French Development Agency (AFD Group). In 2016, the AFD Group had invested alongside Averroes in Metier’s second growth capital fund, via FISEA, the investment and business support fund in Africa owned by AFD and advised by Proparco.

A subsidiary of AFD dedicated to the private sector, Proparco has been working for 40 years to promote sustainable development in economic, social and environmental matters. 

Proparco participates in the financing and support of companies and financial institutions in Africa, Asia, Latin America and the Middle East.

Its action focuses on the key development sectors: infrastructure with a focus on renewable energies, agro-industry, financial institutions, health, education.

Its interventions aim to strengthen the contribution of private actors to achievement of the Sustainable Development Goals (SDGs), adopted by the international community in 2015. 

To this end, Proparco finances companies whose activity contributes to the creation of jobs and decent income, to the supply of goods and services essential, as well as the fight against climate change.

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