Proparco has announced a €10 million investment in the latest fund dedicated to small and medium-sized enterprises (SMEs) from AfricInvest, a long-standing partner and major player in impact investing in Africa.
The fund aims to strengthen SMEs, which play a crucial role in job creation and economic growth on the continent. While aiming for attractive returns and pursuing overall economic development objectives, the fund will pay particular attention to gender and climate impacts, supporting companies in adopting responsible and inclusive practices.
By investing in the AfricInvest Small Cap fund, Proparco is pursuing its mission to promote inclusive and sustainable growth, one of the priority areas of its 2023-2027 strategy, as well as its commitment to working alongside African companies, offering them solutions tailored to their needs while maximising economic, social and environmental impacts. The project also qualifies for the 2X Challenge, a global initiative to support the economic empowerment of women.
The fund will support SMEs in several African countries (mainly in North, East and West Africa) specialising in a number of key sectors, including education, health and agribusiness.
Jérémie Ceyrac, Proparco’s Investment Director, commented : ‘This investment is fully in line with the Choose Africa initiative, which Proparco has launched to support SMEs and start-ups in Africa. This fund reflects our ambition to strengthen the capacities of African entrepreneurs and to respond to economic, social and environmental challenges in a sustainable manner. Our partnership with AfricInvest goes back more than 25 years and we are proud to be able to once again play a joint role in supporting the continent’s economic fabric’.
Brahim El Jai, Senior Partner at AfricInvest, said: ‘This fund is part of our ongoing commitment to support small and medium-sized African businesses with high growth and impact potential in their ambition to become drivers of sustainable transformation. By combining financial support with our local and multi-regional expertise, we are supporting innovation, job creation and the adoption of climate strategies in line with the Paris Agreements. Our aim is to help these companies generate measurable economic, social and environmental value, while consolidating their position in strategic markets.’
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