42940 - Africinvest Fund IV LLC

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Summary of Investment Information

Project Number

42940

Company Name

AFRICINVEST FUND IV LLC

Date SPI Disclosed

Feb 28, 2020

Country

Africa Region

Region

Africa

Projected Board Date

Apr 22, 2020

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 21, 2023

Department

CDFPE - Disruptive Technologies and Funds/Private Equity Funds

Industry

Funds

Previous Events

Approved : Apr 22, 2020
Signed : Jun 4, 2020
Invested : Oct 21, 2020

Sector

Growth Equity Fund

Project Description

The proposed project consists of an equity investment of up to USD30 million AfricInvest IV LLC (“AF IV” or the “Fund”), a generalist, closed-end private equity fund domiciled in Mauritius with a target size of USD500 million. Fund will invest in mid-market growth capital transactions in Africa.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	50.0

Development Impact

Project Outcomes: - Stakeholder: Access to growth capital for Fund investees: The Fund, while maintaining a generalist strategy, will provide access to much needed long-term equity capital for mid-market companies in Africa. - Stakeholder: Increased Investee Growth: IFC expects the Fund to help in knowledge transfer and bring operational value-add to its investees. Contribution to Market Creation - Competitiveness: The project is expected to increase PE market activity in Africa by demonstrating the viability of PE investments given the challenging fundraising environment.

Financial additionality - IFC own account equity: IFC will provide long-term equity capital to help the Fund reach its target first closing size. Non-Financial additionality - Non-commercial risk mitigation: IFC's investment in AfricInvest IV will send a strong signal of confidence to potential investors and help reduce risk perception for domestic and international limited partners in Africa.

E&S Category Rationale / Risks and Mitigation

The Fund intends to invest in potentially medium risk sectors such as financial services, manufacturing, agribusiness, healthcare, education, logistics and distribution. The E&S risks and impacts associated with these sectors are considered limited, generally site-specific, largely reversible and can be readily addressed though mitigation measures. The overall portfolio risk is considered medium and the project has thus been categorized as FI-2 according to IFC’s Policy on Environmental and Social Sustainability. The key risk in this project is ability of the Fund Manager to undertake E&S due diligence 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 will be required to screen investments against the IFC Exclusion List, the national E&S laws and regulations of those countries in which investments are located, and the IFC Performance Standards. Given the sectors of focus for Africinvest Fund IV, the Fund is not expected to support higher-risk transactions that may include: (a) involuntary resettlement; (b) potential adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (d) significant occupational health and safety risks. In addition, investments involving coal mining, coal-related activities and upstream oil and gas activities will be excluded from the fund’s portfolio.

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
AFG	Western Africa Region	O-AA - Commercial Banking - General
AutoXpress Holdings Mauritius	Eastern Africa Region	Q-BA - Grocery Retail (Supermarkets, Hypermarkets, Convenience Stores etc.)
CMGP	Morocco	M-DA - Agriculture, Construction, and Mining Machinery
Fidelity Bank Gh	Ghana	O-AA - Commercial Banking - General
I&M Group	Eastern Africa Region	O-CA - Finance Companies
ISON	Nigeria	R-AC - Other Services (Including IT Enabled Services)
Justrite	Nigeria	Q-BA - Grocery Retail (Supermarkets, Hypermarkets, Convenience Stores etc.)
Netis	Africa Region	N-AD - Other (Including Satellite Telecommunications, Radio and Television Broadcasting, etc.)
The British University in Egypt	Dominican Republic	T-AB - Colleges, Universities, and Professional Schools

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, and line with IFC’s requirements for financial intermediaries, the Fund Manager has an E&S management system (ESMS) and an E&S Officer. The ESMS is applicable to all funds managed by the Fund Manager. The ESMS enables the Fund Manager to identify the E&S risks and impacts associated with the activities of its portfolio companies; E&S action plans are developed to address identified gaps and the performance of the portfolio companies is monitored by the Fund Manager. The ESMS implementation process (due diligence and monitoring) is supported by external consultants as required. Given the growth in the Fund Manager’s portfolio, an additional in-house E&S resource and additional E&S risk management training will be required to ensure adequate implementation of the ESMS, and management of E&S risks and impacts associated with portfolio companies. IFC will monitor the implementation of the ESMS for the new fund through the review of E&S due diligence and monitoring reports as well as site visits (as required).

Contacts

For Inquiries About the Project, Contact

AfricInvest Capital Partners
Hakim Khelifa
Executive Partner
+216 71 189 800
hakim.khelifa@africinvest.com
5th Floor, Barkly Wharf, Le Caudan Waterfront, Port Louis, Mauritius
www.africinvest.com

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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
Hire additional technical E&S resource	12/31/2020
Provide E&S Risk management training to E&S specialists and ESG ambassadors	08/31/2021

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