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Investment in the SALT I fund to support SMEs in the SADC region

Project

Investment funds

Signature date
Location
South Africa, Angola, Botswana, Lesotho, Malawi, Madagascar, Mozambique, Zimbabwe, Multi-country Africa
Financing tool
Equity investment
Financing amount (Euro)
12259910
Financing details
USD 12m Equity investment
Customer
SALT Equity 1 LP
Type of customer
Investment fund
Country of headquarters
Jersey
Project number
IZZ1101
Environmental and social ranking
B
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This project is carried out with the support of the European Union.

Legal notice EU (project)

The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union. This information is given at the time of signature, without prejudice to any developments in the operation/project.

By investing in this fund, Proparco is contributing to supporting SMEs, employment and gender equality in the SADC region and Malawi.

Client presentation

Salt Capital was set up in 2012 by Jan Bosch and Keyur Patel. The other two partners, Jannie Grobbelaar and Aris Malliaros, joined the team in 2016 and 2019, respectively. This team has built a strong track record through club deals structured with DFIs (Deep Catch with DEG) and private investors. Building on the performance of their investments and an excellent reputation on their market, they have launched their first fund, SALT Capital, which will target SMEs from the economic fabric of the Southern African Development Community (SADC) region.  

Project description

The project involves a USD 12m investment in the SALT I fund, including USD 6m subscribed under a junior tranche covered by the European Union’s EFSD+ guarantee. This fund has a target size of USD 100m and will invest in small and medium-sized enterprises in the SADC region. It aims to support between 8 and 10 companies.

Project impact

The main expected impacts of this project are:

  •  Support for 8 to 10 SMEs, with a focus on the health sector, throughout the Southern African Development Community (SADC) region and in Malawi
  •  Support for 3,426 jobs over the next 5 years, based on the job data of the companies of the predecessor fund
  • Support for gender equality by helping with the introduction of policies that benefit women and the appointment of women in the decision-making bodies of the investee companies 
  • The mobilization of USD 40.5m of private finance (ratio of 3.38 based on OECD methodology), in particular through the EFSD+ guarantee. In this respect, FISEA and the EU have played a catalytic role in raising this fund.

The project will contribute to the achievement of SDGs 8 (Decent work and economic growth), 3 (Good health and well-being), 2 (Food security) and 5 (Gender equality).