AMF II: Proparco has invested EUR 10m in an SME support fund in the MENA region

Amethis was set up in 2012 with support from the Edmond de Rothschild investment house. It has already raised two pan-African funds and taken over the management of a fund targeting North Africa (CNAV II). It currently has a total of over EUR 700m under management. Amethis is made up of a team of 35 professionals in 5 offices (Paris, Abidjan, Luxembourg, Casablanca and Nairobi).

Founded by Luc Rigouzzo and Laurent Demey and a member of the Edmond de Rothschild Private Equity Partnership, Amethis is an investment fund manager focused on the African continent, with assets under management of more than EUR 1bn and more than 40 investments completed to date. Amethis provides growth capital to promising mid-market champions in a variety of sectors, offering growth support through its international network covering Europe and Africa. With six offices in Paris, Abidjan, Cairo, Casablanca, Nairobi and Luxembourg, the Amethis team comprises over 50 experienced professionals with strong regional and sectoral expertise. 

This investment by Proparco in Amethis MENA Fund II (AMF II) has been conducted via the SME instrument of FISEA+, the AFD Group facility advised by Proparco and part of the Choose Africa initiative. It aims to support a fund with a target size of EUR 120-150m which will finance SMEs in the MENA region (Morocco, Tunisia, Egypt, Jordan and Lebanon), a segment that is generally neglected by most of the managers operating in the region.

Proparco, through FISEA+, is allocating a EUR 400,000 Technical Assistance (TA) facility to Amethis MENA Fund II. The projects implemented directly through the TA facility will strengthen the environmental, social and governance (ESG) transformation of 10 to 12 portfolio companies of the MENA II fund. This financing is a part of the French Choose Africa initiative implemented by AFD Group.

Through its investments in a dozen or so SMEs in various sectors, this fund should contribute to maintaining some 2,000 jobs and creating more than 1,000 other jobs over the next 10 years. AMF II will also contribute to women’s employment in the MENA region with the implementation of specific HR policies and the inclusion of women in the decision-making bodies of the investee companies. This means that PROPARCO’s investment in AMF II has qualified for the 2X Challenge. The project will contribute to the achievement of SDG 8 (Decent work and economic growth) and SDG 9 (Industry, innovation and infrastructure).

The main objective of this facility is to help the fund and its portfolio companies improve environmental and social risk management, and develop new ambition in the drive for impact by integrating methodologies related to sustainability issues, particularly climate change, in the investment process. The aim is to make it easier for the portfolio companies to implement their greenhouse gas reduction plans. The fund is also committed to supporting the employment and participation of women in the decision-making bodies of its investee companies.