French development finance agency Proparco has made a EUR10 million (US$10.4 million) investment in the latest fund dedicated to small and medium-sized enterprises (SMEs) from AfricInvest, a long-standing partner and major player in impact investing in Africa.
The AfricInvest Small Cap fund aims to strengthen SMEs, which play a crucial role in job creation and economic growth on the continent, and will pay particular attention to gender and climate impacts, supporting companies in adopting responsible and inclusive practices.
The fund will support SMEs in several African countries (mainly in North, East and West Africa) specialising in a number of key sectors, including education, health and agribusiness.
Brahim El Jai, senior partner at AfricInvest, said the fund was part of his firm’s ongoing commitment to support small and medium-sized African businesses with high growth and impact potential in their ambition to become drivers of sustainable transformation.
“By combining financial support with our local and multi-regional expertise, we are supporting innovation, job creation and the adoption of climate strategies in line with the Paris Agreements. Our aim is to help these companies generate measurable economic, social and environmental value, while consolidating their position in strategic markets,” he said.
Jérémie Ceyrac, Proparco’s investment director, said his firm’s investment in the fund was fully in line with the Choose Africa initiative, which Proparco has launched to support SMEs and startups in Africa.
“This fund reflects our ambition to strengthen the capacities of African entrepreneurs and to respond to economic, social and environmental challenges in a sustainable manner. Our partnership with AfricInvest goes back more than 25 years and we are proud to be able to once again play a joint role in supporting the continent’s economic fabric,” he said.
