Equity investment in MPEF IV: Supporting SME development in the Maghreb region and Egypt

Multi-country Global Algeria Egypt Morocco Tunisia
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primary school, enfants, tunisie
The MPEF IV fund supports SMEs operating in sectors such as education or health in North Africa and encourages them to develop regionally.
Client presentation

MPEF IV is a venture capital/buyout fund in North Africa raised by the manager AfricInvest, a pioneering player in the region. Building on its experience in Africa, and particularly in the Maghreb region where it has raised 12 of its 17 investment vehicles, the team now wants to pursue the strategy of the previous MPEF III fund by opening its geographical scope to Egypt.

Project description

This equity investment will aim to support the economic base of small and medium-sized enterprises by getting them to go regional and develop trade links with border economic zones (Sub-Saharan Africa and Europe). This investment will more specifically:

  • Support the emergence and growth of SMEs in focus sectors for AFD Group, such as education or health, in geographical areas in North Africa where companies find it difficult to access long-term financing;
  • Encourage a manager whose investment strategy will contribute to the creation of multi-country groups, which play a key role in the development of regional economic zones and cross-border trade;
  • Strengthen the institutionalization of companies in the portfolio with governance and E&S best practices.
Project impact

This project will contribute to:

  • The development of the private sector and SMEs in the Maghreb region and Egypt, in a wide range of sectors such as agribusiness, logistics and transport, education and health. The manager is actively involved in the management and governance of companies, by systematically having a seat on the Board of Directors, and helps the companies invested in improve the transparency of their management and obtain certifications.
  • Employment and training for local populations: the manager currently employs 60 people, including 19 women, and is planning to recruit 10 additional people, half being women, over the next 5 years. As AfricInvest attaches importance to training and improving the skills of the employees of both the fund and underlying companies, the project should allow 2,700 people to receive training.
28/02/2018
Date of signature of the project
Sectors
Multi-country Global Algeria Egypt Morocco Tunisia
Location
Financing tool
10 000 000 Euros
Amount of funding
Equity investment of EUR 10m
Financing details
Maghreb Private Equity Fund IV
Client
CES