Share the page

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

Project

Multi-sectors

primary school, enfants, tunisie
Flickr : Arne Hoel / World Bank
Signature date
Location
Multi-country Global, Algeria, Egypt, Morocco, Tunisia
Financing tool
Equity investment
Financing amount (Euro)
10000000
Financing details
Equity investment of EUR 10m
Customer
Maghreb Private Equity Fund IV
Type of customer
Investment fund
Country of headquarters
Mauritius
Project number
PZZ1344
Environmental and social ranking
IF-B
Download the report

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.