Proparco - Afrikan Heroes

Startups and SMEs In Cameroon To Benefit From Proparco’s $5.5m Loan Guarantee Scheme.

January 19, 2021

Startups and small businesses in Cameroon have a new funding opportunity to tap from. Proparco, a subsidiary of French Agency for Development dedicated to the private sector, has announced the signing of a partnership with the Cameroon subsidiary of the French banking group, Société Générale, to guarantee loans granted by this bank to Cameroonian startups, SMEs and SMIs affected by the Covid-19 pandemic.

*Audrey Maignan, Proparco’s regional director for Central Africa*

“The deployment of this exceptional guarantee, a new tool implemented as part of the resilience component of Choose Africa, will allow us to expand our action with small and medium-sized Cameroonian companies, in particular those which are severely affected by the current crisis. We are happy to be able to count on a partner such as Société Générale to meet the needs of these companies and preserve their ability to create jobs “said Audrey Maignan, Proparco’s regional director for Central Africa.

Here Is What You Need To Know

The guarantee made available to Societe Generale Cameroon, will allow local startups, SMEs and SMIs to benefit from financing, enabling them to recover from the global health crisis. The amount of the guarantee is 5 million euros ($5.5m), or a little over 3 billion FCFA.

Proparco Société Générale Cameroon

How Startups In Cameroon May Go About Accessing The Loan Guarantee

Startups which can access the loans are those with fewer than 200 people affected by the crisis. The duration of the loan, before repayment is between 12 to 48 months. These loans, which may represent up to 3 months of turnover for 2019 will be guaranteed up to 80% by the AFD group.

Since November 2020, the Cameroonian subsidiary of Societe Generale, thanks to partnerships signed respectively with the European Investment Bank (EIB) and the State of Cameroon, has a line of credit of CFAF 35 billion ($64m) to support SMEs and PMI affected by the coronavirus. The guarantee that Proparco has just granted should both secure and boost the distribution of this funding.

To borrow, click here.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Proparco And Digital Africa Launch A New $6.5m Bridge Fund For African Startups

November 10, 2020

A new fund for African startups is here! Digital Africa and Proparco have officially launched the Bridge Fund. The fund is a bridge investment fund initiated to help African startups continue their development in the face of the hard-to-overcome challenges brought on by the current pandemic.

*Stephan-Eloïse Gras, Executive Director of Digital Africa*

“We believe in this new fund which is a very innovative financial tool although it is still experimental for some players. It will be deployed by Proparco and we are delighted to launch it, ”said Stephan-Eloïse Gras, Executive Director of Digital Africa. The Bridge Fund will be used for co-investment, lending and fundraising.

Here Is What You Need To Know

The fund represents 5 million euros ($6.5 million) to invest in young African startups.
They will receive tickets worth between 200,000 and 600,000 euros. This is done in a quick and easy process, which includes an evaluation of candidates in less than two months.
The investors of the Bridge fund are also subject to the condition: to be known by Proparco and to have already invested a minimum of 50 million in two African startups.
To be eligible for the Bridge Fund, innovative tech companies must prove that they have been in existence for at least 18 months and have already received funds from an investor or a recognized structure. They will also have to achieve 75% of their turnover, a minimum of 200,000 euros, on the continent or have at least half of their teams work there.
The startups targeted are those operating in sectors such as agriculture, energy, education, health, financial inclusion, logistics, green mobility, among others.

“In addition, the targeted companies must have already demonstrated that their business model works and have successfully gone through a first round of fundraising. The approach we have chosen therefore really consists in supporting growth, or, in other terms, scaling up projects” explained Johann Choux, Head of Venture Capital Investments at Proparco, during the presentation.

Digital Africa Bridge Fund

How To Apply To The Fund

Being fully aware of the difficulties confronting high-potential startups, Digital Africa and Proparco have been working on a simplified and rapid process, both for reviewing applications, which will take no more than 8 weeks, and for formalizing contracts and allocating funds. The first step is a questionnaire to enable interested companies to check whether they are eligible or not, which is available on the website:
https://bridge.digital-africa.co (While on the site, Click on “EN”, if you are English-speaking; or “FR” if you are French-speaking.)

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

A New $117 Million Fund Launched For African Startups And SMEs By Proparco And BPIfrance

October 9, 2020

Bpifrance and Proparco have announced the first closing of their fourth fund of funds for Africa, known as Averroès Africa. With a target size of 100 million euros , Averroès Africa will invest in African funds dedicated to startups and small and medium-sized enterprises, to continue supporting the development of the private sector, employment and innovation on the continent.

*Gregory Clemente, Managing Director of Proparco*

“We are very happy to launch this fourth vehicle with Proparco, almost twenty years after the start of our investment activities in Africa. His broad investment thesis will allow us to further diversify our portfolio and seize as many opportunities as possible, particularly in new promising technological segments,” Nicolas Dufourcq, CEO of Bpifrance said. “This launch is being carried out as Africa faces new major challenges: the covid-19 crisis, which requires reinforced support for small and medium-sized enterprises in order to maintain activity and employment, as well as climate change, for which Africa is at the forefront. Averroès Africa will help, we hope, to meet these challenges ”.

Here Is What You Need To Know

The Averroès system was launched in 2003 by Bpifrance and Proparco to support the development of the private equity market first in North Africa and then throughout the continent with the launch of a first pan-African vehicle (Averroès Finance III) in 2015.
Building on the success of this pioneering fund-of-funds system which has enabled nearly 1.2 billion euros to be channeled into around twenty private equity funds and more than 150 companies in 40 African countries, Bpifrance and Proparco wished to continue their collaboration by launching a new vehicle — Averroès Africa.
Averroès Africa, like its predecessors, is open to the subscription of public and private third-party investors, French and foreign, who will complete the first closing round table, for an amount of 55 million euros, in order to reach the target size of 100 million euros.
Averroès Africa will take up the investment thesis of Averroès Finance III by targeting multi-sector private equity funds, with a multi-country, regional or pan-African dimension, and managed by experienced teams. Averroès Africa will have an increased tropism for venture capital funds and, for the first time, it will be able to invest in sector funds in financial services, health and agribusiness, in line with market developments. African.
With a target of 10 to 12 funds in the portfolio, Averroès Africa will ultimately offer exposure to more than a hundred African companies, from startups to mid-size companies, in all the major sectors linked to the emergence of African middle class, such as consumer goods, transport and logistics, industry, education or TMT.
Beyond financial performance, the Averroès Africa team will be keen to maximize the impact of its investments in environmental, social and governance matters, in line with the commitments made by Bpifrance and Proparco.
The team will also seek, as for the predecessor vehicles, to generate business flows between African companies in the portfolio and French companies supported by Bpifrance and eager to seize the opportunities offered by the African market.

“The launch of the 4th Averroès fund of funds demonstrates the growing ambition of the partnership between Proparco and Bpifrance. This new vehicle aims to mobilize and direct public and private capital towards some of the most dynamic and impactful sectors in Africa. AFD and Proparco’s experience, tools and network of partners on the continent make them key players in the financing of start-ups, VSEs and SMEs on the continent. We are indeed convinced that the resilience and development of the continent depend in particular on the support of African companies and entrepreneurs. It is with this in mind that we have further increased our support for them with more than 2 billion euros already committed since 2018 as part of the French Choose Africa initiative,” Gregory Clemente, Managing Director of Proparco said.

Read also: A New $9m Tourism Grant Scheme Launched For Tourism Startups In Ghana

Fund African Startups Proparco Fund African Startups Proparco

About Proparco

A subsidiary of AFD dedicated to the private sector, Proparco has been working for 40 years to promote sustainable development in economic, social and environmental matters. Proparco participates in the financing and support of companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure with a focus on renewable energies, agro-industry, financial institutions, health, education … Its interventions aim to strengthen the contribution of private actors the achievement of the Sustainable Development Goals (SDGs), adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to the creation of jobs and decent income, the supply of goods and essential services, as well as the fight against climate change. More information: www.proparco.fr and @Proparco

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

IFC, Proparco Invest $100m Into Humania For Investments In Healthcare In Egypt and Morocco

July 4, 2020

The IFC, a member of the World Bank group, the IFU, the Danish Investment Fund for developing countries, and PROPARCO, a subsidiary for the private sector of the French Development Agency (AFD) group, have made a capital investment of $ 108.5 million in Humania North Africa (Humania), a platform of private hospitals, helping to improve medical care in Egypt and Morocco.

*Sergio Pimenta, IFC vice-president for the Middle East and Africa*

“We are very pleased to continue to support Humania, our long-standing partner and client in the health sector,” said Sergio Pimenta, IFC vice-president for the Middle East and Africa. “Today’s agreement demonstrates the strength of our partnership with IFU and Proparco. This project is a good example of how the private sector can be used to expand access to medical care, build human capital, improve social inclusion and stimulate innovation in health systems in the Egypt and Morocco ”.

Here Is What You Need To Know

The investment envelope includes a contribution of $ 45 million for the IFC and $ 63.5 million mobilized from the IFU up to $ 43.5 million on behalf of the Danish investment fund SDG, and $ 20 million for PROPARCO.
The financial support will help Humania to develop a network of high quality tertiary hospitals in Egypt and Morocco. This project comes at a time when the COVID-19 pandemic is putting pressure on health services in the Middle East and North Africa. For IFC, this is the second partnership with Humania in this fiscal year.
In December 2019, IFC enabled innovative Islamic funding in the amount of $ 125 million for Humania, which is part of the Saudi health group Bait Al Batterjee (BAB). Thanks to these two partnerships, Humania North Africa will become a healthcare platform investing more than $ 360 million in the region.

“Our partnership with IFC, IFU and Proparco will help us make significant investments at a time when demand for quality health care is increasing,” said Sobhi Abdul Jalil Batterjee, President of Humania & BAB. “It will allow us to provide affordable, quality health care, including specialized services, while Egypt and Morocco face COVID-19.”

*Sobhi Abdul Jalil Batterjee, President of Humania & BAB*

“Our partnership will help redefine the contribution of the private sector to healthcare in these countries by building and operating hospitals in accordance with global best practices,” added Makarem Batterjee, vice president of Humania & BAB.

As a first step, Humania plans to build a new hospital in Alexandria and a clinic to complement the Saudi German Hospital in Cairo, Egypt. The project will also include a new high-quality multi-specialty hospital in the new ecological city of Zenata, in Morocco, a new city supported and funded by AFD.
Together, the two hospitals will have nearly 600 hospital beds and 240 outpatient clinics. The Humania group already operates the Saudi German Hospital in Cairo with a capacity of 200 beds and is already a leader in the Egyptian market.
The development of Humania is considered essential in these two countries where there is a shortage of doctors and hospital beds. Egypt’s health sector needs $ 60 billion in investment by 2050 to meet growing demand for medical services, while Morocco needs to improve the delivery of health care, especially for women and children.

Ethiopian Edible Oils Business Turaco Raises US$22m Growth capital ...

Why The Investors Invested

According to Lars Krogsgaard, IFU Director of Investments:

“We are very pleased that by investing in Humania, we can help build capacity and introduce high-quality service to the healthcare sector in need.” in Egypt and Morocco. We are convinced that this investment will benefit patients and that it will be an important element in the ambition of these countries to ensure universal health care coverage. ”

Khimdjee Djalal, Deputy Managing Director of Proparco, said:

“At Proparco, we are very pleased to contribute, under the leadership of the Batterjee family and in partnership with the IFC and IFU, to the development of the health sector in North Africa through Humania North Africa. We have full confidence in the experience of Humania North Africa in helping to close the structural health care gap in the region and providing quality services to improve the quality of life for the population. This transaction is of particular importance for Proparco, because the region is currently facing the COVID-19 crisis which highlights the crucial need to develop quality and resilient health systems in countries like Morocco and Egypt ”.

The project contributes to IFC’s goal of expanding the role of private medical providers in the MENA region, where public hospitals are struggling to keep up with the growing demand for medical services. The IFC invested and mobilized more than $ 286 million in fiscal year 2020 to support health care in the region.
This investment also responds to new medical and social challenges linked to the recent global health crisis, as well as to PROPARCO’s objectives of supporting the construction and modernization of hospitals and private clinics, in order to guarantee sustainable improvement in healthcare. health.
PROPARCO has invested in more than 1,355 additional beds in hospitals by strengthening the complementarity of public-private partnerships for quality services

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.

Ethiopian Edible Oils Business Turaco Raises US$22m Growth capital From Proparco

June 11, 2020

Turaco, the Ethiopian edible oils company and owner of the brand name Tena Oil, has a new funding from the French development financial institution Proparco and the South Africa-based Ethos Mezzanine Partners. The business has announced a US$22 million investment from both investors.

Chief Investment Officer, and Chairman of the Board of Turaco, Saad Aouad

“We are extremely proud of how our companies have matured to become manufacturers of the leading brands in Ethiopia in their respective sectors, as well as the tremendous growth rates that have been achieved so far,” said 54 Capital PE Advisors’ Chief Investment Officer, and Chairman of the Board of Turaco, Saad Aouad.

Here Is What You Need To Know

With the new investment, Turaco will fund the expansion of its manufacturing operations, carried on by Health Care Food Manufacturers SC and ZAK Ethiopia Manufacturing & Trading Plc.
Some of the capital will also be applied to upgrading these facilities to meet IFC performance standards relating to Environmental, Health, Safety and Governance.
According to a press-release by Proparco, the deal was structured and arranged by African Alpha Investment Partners.

Why The Investors Invested

“We are very excited to invest in Turaco’s Ethiopian FMCG manufacturing business. The growth prospects for the business, and the chance to invest in this management team, alongside 54 Capital and Proparco, offers us a unique opportunity to support economic growth, development and job creation in the Ethiopian private sector,” Phillip Myburgh, Managing Partner at Ethos Mezzanine Partners said.

Being Proparco’s first mezzanine transaction in Ethiopia, Geoffrey Coombs, Senior Investment Officer at Proparco said:

“Investing in the development of emerging states such as Ethiopia is a key strategic priority for Proparco, and we are proud to support Turaco in its expansion.

“Turaco’s ambitious growth strategy will support job creation, the development of local agribusiness, import substitution and economic growth in the country,” he added.

Brad Koen, Co-founder and Director of African Alpha Investment Partners, and board member of Turaco applauded Ethos and Proparco for undertaking the transaction during a time when there is an on-going global COVID-19 pandemic.

“We are excited to see 54 Capital and its portfolio of Ethiopian companies, now receiving the support it deserves from large leading institutional investors such as Ethos Mezzanine Partners and Proparco. It will undoubtedly help to propel Turaco on to even greater heights,” said Brad.

“And we salute the management of Turaco’s operations in Ethiopia for establishing market-leading manufacturing infrastructure, business processes and systems that have delivered quality and affordable locally manufactured products to Ethiopians throughout the COVID-19 crisis,” he stated.

A Look At What Turaco Does

Turaco is a holding company managed by 54 Capital PE Advisors, which holds a portfolio of FMCG assets in Ethiopia. The business, manufactures and sells edible sunflower and soya oil under the brand name Tena, as well as soaps and detergents and personal care products, including laundry soaps and perfumed toilet soaps, under the brand names 555 and Aura.

“It is our vision to improve the lives and livelihood of the communities we serve, by providing world class products and services for current and future generations, and we look forward to delivering that vision with our new financing partners,” Chairman of the Board of Turaco, Saad Aouad said.

Turaco has embarked on a bold expansion strategy, materially increasing the capacity and effectiveness of its subsidiaries’ production facilities, as well as expanding their range of product offerings, to meet growing demand for its market-leading brands in Ethiopia.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.