Supporting the economic growth of SMEs in Africa

AfricInvest was founded in the early 1990s, it is an investment and financial services company.

Uniquely positioned as one of the most experienced private equity investors on the continent, AfricInvest has dedicated investment teams focused on Africa, and employs more than 100 professionals in eleven offices .

AfricInvest raised $2 billion across 21 funds and benefits from strong, long-term support from both local and international investors, including leading development finance institutions in the United States and Europe.

Having co-founded the African Venture Capital Association (AVCA) as well as the Global Private Capital Association (GPCA) and the Euromed Capital Forum, the firm is an active promotor of the private equity industry in the region.

Since the beginning, AfricInvest has invested in more than 200 companies across 35 African countries in a variety of high growth sectors and maintains a broad network of high quality executives across Africa, offering extensive expertise in key growth industries, including financial services, agribusiness, consumer/retail, education and healthcare.

Proparco has invested €10 million in the latest fund dedicated to small and medium-sized enterprises (SMEs) of AfricInvest, a long-standing partner and major player in impact investing in Africa.  

This fund aims to strengthen SMEs, which play a crucial role in job creation and economic growth in Africa. While aiming for attractive returns and pursuing overall economic development objectives, the fund will pay particular attention to gender and climate impacts, supporting companies in adopting responsible and inclusive practices.

The expected impacts of this financing are as follows:

• 4,200 jobs supported over the next 5 years in the companies financed by the fund
• 20 MSMEs supported in several African countries, mainly in North, East and West Africa, specialized in a variety of key sectors such as education, health and agribusiness
• Contribution to gender equality through a commitment to finance companies aligned with the 2X Challenge (30% of Proparco’s financing). Proparco’s financing is aligned with the 2X Challenge on the basis of the criteria 3 (Employment) and 6 (Portfolio).

By investing in the AfricInvest Small Cap fund, Proparco is pursuing its mission to promote inclusive and sustainable growth, one of the priority areas of its 2023-2027 strategy, as well as its commitment to working alongside African companies, offering them solutions tailored to their needs while maximizing economic, social and environmental impacts.

The project will thereby contribute to the achievement of SDGs 5 (Gender equality) and 8 (Decent work and economic growth).