Enko Capital’s development capital fund aims to strengthen African SMEs. PROPARCO’s equity investment will allow the highest social and environmental standards to be promoted in the fund and among its beneficiaries.
Enko Africa Private Equity Fund (EAPEF) is a private equity fund managed by Enko Capital, an asset management company which focuses on Africa and is present in London and Johannesburg. The fund management team is based in Johannesburg.
EAPEF has raised USD 83.25m and aims to take significant minority stakes in the capital of SMEs which have the potential of making an initial public offering within a 5-year period. The focus sectors are the agro-industry and financial services, but also the health, consumer goods and corporate services sectors. The fund targets at least 30% of its investments in French-speaking Africa and has a particularly well developed origination channel in Central Africa. Proparco invested during the fund’s second closing.
This operation will support the segment of SMEs which is essential in the creation of jobs and for overall development in Africa. The fund expects to create several thousands jobs over the next 3 to 5 years. This financing will also support key sectors for development and geographical areas in Sub-Saharan Africa which are particularly neglected by equity investors. It will also help to boost capital markets, which play a critical role in the development of regional economies. The investment of Proparco will allow high environmental and social standards to be disseminated among funds and portfolio companies.