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I&P and Proparco join forces to accelerate the growth of African SMEs

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IPAE3-I&P-PROPARCO-2025
DR

With support from the FISEA initiative led by Proparco, Investisseurs & Partenaires (I&P) has completed the first closing of the I&P Afrique Entrepreneurs 3 (IPAE 3) fund. Backed by the European Commission through the EFSD+ program, FISEA is providing a catalytic junior tranche designed to attract additional private capital. This third generation of the impact fund strengthens the commitment to development driven by local talent and anchored in African economic sovereignty.

Supported by Proparco, the European Investment Bank (EIB), the West African Development Bank (BOAD), and Bpifrance, the IPAE3 fund aims to reach €70 million, with a second closing scheduled for the second half of 2026.

Mobilizing more capital for African entrepreneurship

The first closing reached €41 million, including a €7 million catalytic junior tranche provided by FISEA, managed by Proparco. This contribution will help I&P increase the fund’s appeal to investors, fully aligned with Proparco’s mobilization strategy.

This third generation builds on the achievements of the IPAE 1 and 2 funds, which have invested €146 million in 56 SMEs—68% of them located in LDCs and fragile countries. To date: 17 exits completed, 79% of companies delivering essential goods or services, more than 9,000 jobs supported since 2018, a 66% increase in direct employment, and tangible improvements in ESG practices.

Strengthening the continent’s economic sovereignty

IPAE 3 will focus on businesses owned or led by entrepreneurs deeply rooted in Africa, as well as those helping build the continent’s resilience—whether by producing essential goods and services aligned with the Sustainable Development Goals or by providing alternatives to imports.

The fund will prioritize investments in West Africa and Madagascar, regions where I&P has a long-standing presence, seasoned local teams, and strong entrepreneurial networks.

Scaling up African SMEs

Drawing on its long history on the ground, I&P will offer close support to entrepreneurs, particularly SMEs in the structuring and growth phases. IPAE 3 aims to bridge the financing gap in the “missing middle”: companies too large for venture capital but still too small for traditional private equity.

The fund plans to take minority stakes (equity or quasi-equity) ranging from €1 million to €5 million in 15 to 20 SMEs operating in strategic sectors such as agribusiness, energy, financial services, education, healthcare, technology, and more.

Tailored technical support to drive value and impact

The fund might benefit from €1.2 million in technical support, financed by the French Ministry for Europe and Foreign Affairs and the European Union, and provided by Proparco through FISEA. This budget will cover operational and strategic expertise designed to strengthen both the performance and resilience of the portfolio companies.

Fully managed by I&P, this support will be tailored to the real needs of businesses: organizational structuring, HR management, capacity building in finance and marketing, ESG compliance, and more.

Gender equality at the core of the project

IPAE 3 also places climate and gender equality at the center of its impact strategy:

  • Due diligence and climate plans for 100% of investments,
  • At least 60% offering direct mitigation or adaptation solutions, with a targeted decoupling of ≥ 15% between revenue growth and emissions.
  • The portfolio will be fully aligned with the 2X Challenge requirements, with a minimum of 30% women entrepreneurs,
  • Particular attention to less developed or fragile countries.

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