Proparco invests US$30m in private equity fund AfricInvest

AFRICA – Proparco, a French Development Financial Institution has invested US$30 million in the first closing of the AfricInvest IV fund, alongside other development finance institutions, pension funds reputable Africans, and a reinsurance company.

In the continuation of the previous funds, the AfricInvest IV fund aims to provide growth capital to medium and large capitalization companies in Africa, by focusing on consumer-oriented sectors, in particular financial services, manufacturing industry , retail and consumer goods, food, health care, education, telecommunications, logistics and distribution.

The fund seeks to develop local businesses that are well positioned to make them regional champions. It will be the first fully Pan-African fund of the group.

Through its investment of 30 million dollars, Proparco supports the development of strong local and regional businesses, oriented to consumers, throughout Africa. AfricInvest is one of the pioneers of private equity in Africa, investing successfully on the continent through its funds from North Africa and sub-Saharan Africa for more than 25 years. It has invested in 15 of the manager’s 19 funds since 1997.

A long-standing partner of the group, The private sector is the main engine of economic growth and poverty reduction in Africa, and small and medium-sized enterprises constitute the majority of the African economic fabric. Their access to capital is crucial, and its scarcity remains the main obstacle to growth.

This project should contribute to the achievement of several Sustainable Development Goals (SDGs), including 8 “Decent work and economic growth” and 9 “Industry, innovation and infrastructure”. It should support job creation, including the employment of women, mainly in beneficiary companies.

Proparco will support AfricInvest and the portfolio companies in improving environmental, social and governance standards, management practices and in assessing their impact on development. As part of the French Choose Africa initiative, this investment is part of Proparco’s strategy on the African continent, where companies have difficulty accessing long-term financing.

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.

Founded in 1994 in Tunisia, the AfricInvest Group is a pioneer and leader in Private Equity in Africa, targeting growing SMEs, operating in structuring sectors.

Supported by private and institutional investors, as well as first-rate international development agencies, AfricInvest is a long-term generalist investor intervening in the mid-market segment and which supports the development of SMEs in the implementation of their projects. development, especially in Africa.

With nearly 1.5 billion euros in assets under management, AfricInvest has made more than 160 investments to date in nearly 30 countries in Africa – and in France – and relies on a team of 80 employees of 19 different nationalities presenting a spectrum of complementary skills, and operating from 9 offices established in Abidjan, Algiers, Casablanca, Lagos, Cairo, Nairobi, Paris, Port-Louis and Tunis.

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