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Tunisia’s AfricInvest Receives USD 10.4M from Proparco to Fund SMEs 

Tunisia’s AfricInvest Receives USD 10.4M from Proparco to Fund SMEs 
Image Source: Proparco Website
  • Proparco invests USD 10.4 million into Tunisia’s AfricInvest’s latest SME focused fund called AfricInvest Small Cap Fund.
  •  The aim is to support SMEs in Africa with high growth and potential to become drivers of sustainable transformation. 
  • The fund aims to support SMEs mainly in North, East and West Africa with a focus on key sectors such as education, health and agribusiness.

French development agency finance agency Proparco invests USD 10.4 million into Tunisia’s AfricaInvest’s latest SME focused fund.  

AfricInvest and Proparco

Founded in the early 1990s, AfricaInvest is an investment and financial services company that is positioned as an experienced equity investor. Thus, they target growth-capital investments in SMEs that dominate in their local markets with the potential to scale up to expand regionally. 

This investment is part of Proparco’s broader Choose Africa initiative which is dedicated to enhancing the growth and sustainability of African SMEs and startups. Furthermore, the initiative aims to provide financial resources and support to entrepreneurs. This is with the aim of fostering economic development and job creation across the region.

Jérémie Ceyrac, Proparco’s Investment Director, commented “This investment is fully in line with the Choose Africa initiative, which Proparco has launched to support SMEs and start-ups 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.”

AfricInvest and Proparco have a partnership that spans over two decades, and together they aim to foster a vibrant ecosystem for SMEs in Africa. They aim to ensure that these enterprises thrive and contribute to the region’s economic growth and resilience. Through this investment, both are aiming to tackle the challenges faced by African entrepreneurs and supporting sustainable development.

Financing SMEs

The AfricInvest Small Cap Fund aims to strengthen small and medium enterprises (SMEs). This is because SMEs play a significant role in job creation and economic growth in the continent. Furthermore, the fund aims to support SMEs in several African Countries mainly in North, East and West Africa. This is with a focus on those who specialize in key sectors such as  education, health and agribusiness.

 The fund will aim to generate attractive returns and pursue economic development objectives. Moreover, it will focus on gender and climate impacts by supporting companies in adopting responsible and inclusive practices.

Brahim El Jai, senior partner at AfricInvest, detailed that the fund is part of AfricInvest’s commitment to support SMEs in Africa with high growth and potential to become drivers of sustainable transformation. Brahim El Jai further said “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.”

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