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Mediterrania Capital III: Equity investment to support SMEs in Africa

Project

Multi-sectors

Cameroun, Région Sud, centre de formation, développement rural, jeunes, Homme
©Rodrig Mbock
Signature date
Location
Multi-country Global, Cameroon, Côte d'Ivoire, Egypt, Senegal
Financing tool
Equity investment
Financing amount (Euro)
15000000
Financing details
EUR 15m Equity investment
Customer
MEDITERRANIA CAPITAL III LP
Type of customer
Investment fund
Country of headquarters
Mauritius
Project number
PZZ1337
Environmental and social ranking
IF-B
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco is investing in the 3rd fund of Mediterrania Capital Partners, a management team which makes equity investments in small and medium-sized enterprises in North Africa and the Middle East. This new fund will extend the support to SMEs in Egypt, Cameroon, Senegal and Côte d’Ivoire.

Client presentation

Mediterrania Capital Partners (“MCP”) has been operating in the MENA region for some 10 years and is a management team making equity investments in SMEs operating in various sectors (agriculture, health, education). Via the raising of the first two vehicles, the team manages 18 equity investments for an amount of some EUR 180m.

Project description

This third vehicle, Mediterrania Capital III, with a total amount of EUR 198.7m, aims to extend the support to midcaps. In order to continue to consolidate its foothold on the continent, the manager Mediterrania Capital Partners will gradually extend its geographical area to Egypt and Sub-Saharan Africa (particularly Cameroon, Senegal and Côte d’Ivoire).

Project impact

This project’s main impacts on development will be:

  • Support for employment and training: it is estimated that this project will maintain or create 1,425 direct and indirect jobs. The teams in the funds will benefit from specific training in activities. For the companies invested in, the fund will promote the allocation of health insurance and a supplementary pension system for employees in the companies supported.
  • The strengthening of the private sector: MC III aims to support the development and strengthening of the companies invested in, in sectors diversified in domestic consumption, but also in the renewable energies sector (5 to 10% of the fund). It mainly targets small and medium-sized enterprises which generally find it difficult to access financing from local commercial banks.
  • The development of non-financial support: the fund is actively involved in supporting the companies invested in for the governance and strategy components.
MC IV