The European Investment Bank (EIB) has invested EUR15 million (US$15.8 million) in the IPAE 3 fund run by Investisseurs & Partenaires (I&P).
IPAE 3 fund is an innovative and high-impact fund in Africa, which supports local businesses with high growth potential in key areas for the countries involved. These vital sectors include agriculture, nutrition, health, energy, water, industry and services.
It is expected to create over 4,000 direct jobs, at least 40 per cent of which will be for women. The fund will also be fully aligned with the criteria of the 2X Challenge supporting women entrepreneurs.
The EIB – along with the West African Development Bank (BOAD) and Proparco – is among the first to invest in this fund, and aims to attract other public and private investors. By supporting the fund, the EIB aims to unlock further investment amounting to 4.5 times the figure invested by the EIB.
This is a milestone in financing for SMEs in West Africa and Madagascar, particularly in countries where private equity funds have traditionally faced significant investment challenges. I&P has a local presence in Ivory Coast, Ghana, Senegal and Madagascar, and also covers nearby countries such as Benin and Togo.
I&P co-CEO Sébastien Boyé said his firm was proud to continue its long-term partnership with the European Investment Bank, which began almost 20 years ago.
“As one of the first players to make a formal commitment to IPAE 3, the EIB is playing a decisive role in the success of this round of fundraising, along with the other players involved in this initial closing,” he said.
“The commitment that has been made to IPAE 3 demonstrates that there is confidence in our approach and expertise. IPAE 3 has a unique ambition: to grant finance to capable, responsible and innovative businesses that offer solutions to the biggest challenges facing Africa, while supporting economic inclusion, especially that of women.”
EIB vice-president Ambroise Fayolle said he was pleased to have signed this new investment with Investisseurs & Partenaires to support IPAE 3.
“Our aim is to provide finance for startups and to assist them in their development, especially in countries where accessing finance is difficult,” he said.
“By taking action, we are helping to create a more responsible form of entrepreneurship and supporting women entrepreneurs. In this way, we are helping to create jobs and develop the business leaders of the future. These are the key objectives of our finance operation in Africa alongside our Team Europe partners.”
