37516 - Metier Capital Growth Fund II

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

37516

Company Name

METIER CAPITAL GROWTH FUND II PARTNERSHIP

Date SPI Disclosed

Dec 10, 2015

Country

Africa Region

Region

Africa

Projected Board Date

Jan 15, 2016

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 21, 2023

Department

TMT, Venture Capital & Funds

Industry

Funds

Previous Events

Approved : Feb 26, 2016
Signed : Mar 11, 2016
Invested : Apr 1, 2016

Sector

Growth Equity Fund

Project Description

The proposed project entails an IFC equity investment for the lesser of ZAR300.0 million or US$22 million, not to exceed 20% of total commitments, in Metier Capital Growth Fund II (“Metier II” or “the Fund”), a 10 year closed-end fund seeking to raise up to ZAR 3 billion. The key objective of Metier II is to construct a portfolio of investments diversified by sector and deal type, which collectively capture the attractive mid-market growth opportunity in Sub-Saharan Africa (“SSA”). The Fund will invest in 8 to 12 control or significant minority investments in mid-market growth and replacement capital transactions. Consistent with the investment strategy deployed by its previous funds, Metier II will seek to invest in high-growth opportunities, some of which may offer cross-border expansion throughout the region. The Fund will seek 50% exposure outside South Africa (“SA”).

Metier’s investment themes build upon the strategy employed in the predecessor fund focusing on sectors that are set to benefit from positive demographic trends, rising investment in infrastructure services, and intra-regional trade. The strategy will have a SSA geographic focus, using SA as a gateway, and moving outside into the rest of Africa in concentric circles. The SSA strategy will thus be primarily buy-and-build with bolt-ons rather than individual standalone investments. The Manager sees opportunities in Southern African companies partnering with local companies in SSA to provide capital, industry expertise, customer relationships and management skills, to take advantage of the market growth opportunities. Metier’s focus remains on a similar fund size to their predecessor fund, and remains focused on mid-market opportunities.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	18.60

Development Impact

Metier Capital Growth Fund II is expected to deliver strong development impact in the following areas:
(i) Job Creation: The growth of the Fund's portfolio companies is expected to result in strong job creation. Mid-cap growth equity investments, which the Fund is focusing on, have significant reach to SMEs, the largest impact on job creation, and the potential for IFC to develop direct relationships with the underlying companies. IFC's portfolio experience has been that non-SME's in the growth equity space create more jobs than SMEs at a lower capital commitment per job created.
(ii) IDA countries: The Fund will target 50% outside South Africa, which will cover companies located in IDA/frontier countries.
(iii) Private sector development: The Fund will employ hands-on management in its portfolio companies. The Fund Mananger's structuring know-how will be leveraged on, and value-add and growth strategies incorporated by investee companies, leading to improved competitiveness and sustainability.

E&S Category Rationale / Risks and Mitigation

The project has been categorized as FI-2 according to IFC’s Policy on Environmental and Social Sustainability. Metier II is a generalist fund focusing on investing in mid-market companies mostly in South Africa, Southern Africa and other countries in Sub-Saharan Africa. The fund’s sectors of focus include – transport and logistics, FMCG, infrastructure services, retail, healthcare and agribusiness. The potential E&S risks and impacts associated with these sectors are considered mostly limited, site-specific and reversible; the overall portfolio risk is thus considered medium. The applicable requirements are the IFC Exclusion List, the National E&S Laws in the countries where portfolio companies are located and the IFC Performance Standards.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
Master Plastics	South Africa	L-AC - Other Plastic and Rubber Products (Including Polypropylene Bags, Housing Components, Containers, etc.)
Southey	South Africa	M-CA - Ship Building and Repairing
Astrim Holdings	South Africa	G-FA- Pharmaceuticals and Medicine Manufacturing
KENAFRIC	Kenya	F-AI- Other Food
Life & Brand Co	South Africa	U-AE- Other (Including Restaurants, Amusement Parks, etc.)
Retailability	South Africa	Q-BE- Fashion Retail (Apparel, Footwear, Sport)
Vox Telecom	South Africa	N-BA- Internet Access Providers (Including ISPs, Datacenters)

The main E&S risks and impacts of this project relate to the ability of the Fund Manager to conduct adequate E&S due diligence and monitoring to identify and manage the E&S risks associated with the activities of the portfolio companies in line with IFC’s policy requirements. The Fund Manager is an existing IFC client; IFC invested in Lereko Metier Sustainable Capital (LSMC) Fund. The Fund Manager has separate Environmental and Social Management Systems (ESMSs) in place for the funds its manages – LMSC, Metier I and Metier II; and E&S Officers responsible for the implementation of the ESMSs. In addition, adequate E&S due diligence and monitoring assessments are conducted for portfolio companies. Similar to the ESMS in place for LSMC, the ESMS in place for Metier II is considered adequate. To complement the ESMS, the Fund Manager will be required to develop an external communication mechanism which meets the requirements of IFC Performance Standard 1.

Contacts

For Inquiries About the Project, Contact

J-P Fourie Metier Tel: +27 (0) 11 268 4075 (direct) Tel: +27 (0) 11 268 4000 (switchboard) Mobile: +27 (0) 82 497 3385 e-mail: jp@metier.co.za Metier Investment & Advisory Services (Pty) Limited 2nd Floor, 5 Commerce Square, 39 Rivonia Road, Sandhurst, South Africa Private Bag X11, Northlands, 2116, South Africa

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Nominate officers	02/29/2016
Establish SEMS	02/29/2016
Develop an External Communication Mechanism which meets the requirements of Performance Standard 1	03/31/2016

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Private Equity Funds Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer