African SME-focused Fund Reach $84.5m

The African SME-focused fund’s total capacity has reached $84.5 million as Impact investment firm Investisseurs & Partenaires (I&P) announced the second closing of its I&P Afrique Entrepreneurs 2 (IPAE 2) fund.

Launched in 2002, I&P is committed to contributing to the rise of a sustainable and dynamic private sector in Sub-Saharan Africa.

The firm announced the first close of over EUR50 million (US$59 million) for its IPAE 2 fund in December 2017; and has already invested in four African SMEs – food flavouring producer Afribon; CoinAfrique, the leader in mobile classifieds in French-speaking Africa; professional training company the African Management Initiative (AMI); and PROCRÉA, an Ivorian clinic specialised in reproductive health.

The second close adds a further EUR25 million (US$28 million) to the fund; putting I&P on track to reach its total target of EUR80 to 90 million (US$90 – 100 million), with a third and final close expected in the first half of 2019.

The IPAE 2 fund brings together a diversified panel of investors, including public investors such as the IFC, PROPARCO, European Investment Bank, BIO, DGGF, and Bpifrance; private and corporate investors – including the AXA Impact Fund and Société Générale -; as well as several family offices and foundations.

The fund aims to invest in equity and quasi-equity in 30 to 40 startups and companies located in Sub-Saharan Africa and the Indian Ocean, with the mission of promoting a new generation of African entrepreneurs.