On the occasion of its fifteenth anniversary, the Impact Investment Group dedicated to small and medium-sized enterprises in Sub-Saharan Africa, Investors & Partners (I & P), recently announced a first closing of over 50 million euros for its new IPAE 2 fund combining economic profitability and societal impacts. At a press conference held yesterday in Ouagadougou, I & P President Jean-Michel Severino detailed the ambitions of this new fund, part of whose investments will be directed towards Burkina Faso and the neighboring countries. .
Strong interest for Burkina Faso and neighboring countries
On the occasion of the launch of the IPAE 2 fund, the president of I & P, Jean-Michel Severino, chose to go to Ouagadougou on Thursday 11 January to meet entrepreneurs and the Burkinabè press to discuss investment projects I & P in the Sahelian zone. IPAE 2 will make between 5 and 10 investments in Burkina Faso, Mali and Niger in the next five years.
I & P is already active in Burkina Faso with the IPDEV 2 program, which sponsors African impact funds including the Sinergi Burkina and Sinergi Niger funds, and the IPAE fund, which supports entrepreneurs looking for economic and societal performance. I & P currently has several Burkinabe companies in its portfolio, including the Bakou Logistics motorway transport company, headed by Mr. Mamadou Traoré, and the ACEP Burkina Microfinance Institution, headed by Mr. Ousseni Kirakoya. I & P has also strengthened its presence in the region with the opening of a new office in Ouagadougou in April 2015, managed by Mr. Sidy NIANG. The office covers Burkina Faso, Mali and Niger.
'I & P's commitment to the development of the African continent is reflected in the activity of various funds, particularly in Burkina Faso, whose philosophy remains the same: entrepreneurial spirit, commitment to development, integrity and requirement. With an office in Ouagadougou, I & P contributes fully to the development of the Burkinabè entrepreneurial ecosystem to meet the challenges of inclusive and sustainable growth as well as employment. The success of companies such as Barajii, which produces and markets pure water, flavored water and juices made from local products, or Bakou Logistics, the Best Freight transport company elected Total Burkina, confirms the relevance of our investments in Burkina and the potential of this region ",explains Jean-Michel Severino, Chairman of Investisseurs & Partenaires.
Balanced round table, renewed confidence
Building on the success of the first fund of the I & P Afrique Entrepreneurs family (IPAE) launched in 2012 and endowed with 54 million euros, Investors & Partners (I & P) decided themore important new fund to target growing African SMEswhose financing needs are higher (from 300 000 euros to 3 million euros).
The first closing of 50,3 million euros announced the 11 last December is composedequally between new investors and reinvestments,This reflects both renewed confidence in the work of the management teams and the legitimacy of the enhanced fund in the impact investment sector.
The quality of the round is also based on abalanced distribution between public investors(Proparco, International Finance Corporation, European Investment Bank ...),corporate and private(impact fund of Axa IM, Société Générale ...),family office and foundations.
Between 30 and 40 startups and African companies supported in the next 5 years
Endowed with 80 millions of euros, IPAE 2 willinvest in equity and quasi-equity in minority in 30 at 40 startups and companieslocated in Sub-Saharan Africa and the Indian Ocean, and thus promote the construction of a sustainable and efficient private sector. IPAE 2 also aims to establish itself in East Africa by creating an investment hub from Nairobi to operate throughout the sub-region.
The investment approach remains generalist, while targeting the sectors that contribute to achieving the Sustainable Development Goals (SDGs): agribusiness, health, construction, renewable energies, microfinance, industry, products and services B2B ...
Significant financial return, optimized societal impacts
IPAE 2 is aiming for asignificant financial return and high-level social and environmental impacts, especially in terms of expanding the entrepreneurial base, the use of local subcontracting, job creation, the promotion of women's entrepreneurship, environmental protection, setting up in fragile countries, etc.
I & P thus reinforces its impact investment model focused on promoting responsible African entrepreneurs and demonstrates this through the establishment of ainnovative compensation system of the management teamindexed to financial performance and the achievement of extra-financial indicators.
IPDEV1 was the first fund created by I & P in 2002. With 11 million euros, it has invested in 33 companies (agro-industry, essential services, industry, health, microfinance ...) located in a dozen countries. Twenty outings were made. More recent, IPDEV2 aims to incubate 10 local funds with national partners. After a first closing in 10 2015 million euros and a second 2018 start to reach its target size of 20 million euros, four funds are active - Sinergi Niger, Burkina Sinergi, Teranga Capital (Senegal) and Comoé Capital (Ivory Coast) - and two are being set up in Madagascar and Ghana. As for the management team of IPAE, since 2012 it has constituted a portfolio of 29 investments representing 30 million of commitments. The turnover of the companies supported has increased by 27% on average in 2 years.
Investors & Partners it is:
- More 5 000 jobs created and supported (cumulated on 3 funds)
- Better access to financial services for 32 000 people (IPDEV1)
- Sustainable access to water and electricity for 10 000 people (IPDEV1)
- 90% of companies supported meet unmet needs (IPAE1)
- A financial leverage of 1,4 euro for every 1 euro invested (IPAE1)