The technical sponsors of the Fund are XSML and Cenainvest who will jointly manage the Fund. XSML is a social investment fund manager based in Amsterdam, the Netherlands, that invests globally in non-listed small and medium enterprises (“SMEs) in developing countries. Messrs. Jan Voss, Jarl Heijstee and Marcel Posthuma are the XSML professionals who will be dedicating substantial time to the Fund and will work closely with the local team, Cenainvest. Messrs. Voss, Heijstee and Posthuma have, in aggregate, more than 25 years of experience in PE in emerging markets. Mr. Voss is an entrepreneur with proven experience in IT and Media companies. Mr. Heijstee and Mr. Posthuma were FMO employees. IFC sought references from FMO, the Dutch Development Company, and they were strong and positive. The local partner, Cenainvest, is a fund manager based in Yaounde, Cameroon with more than 10-years of successful PE track record, advising high growth SME’s in Central Africa and with presence in Central Africa, including in DRC. Cenainvest has risen over EUR 23 million across three funds, invested EUR 13.5 million in 33 projects (of which 18 are startups) and exited 6 investments. The Cenainvest professionals dedicating substantial time to the Fund are: Albert Bengala, Baniara Yoyana, Emile Ymele and Joel Ngongo Luteta. XSML and Cenainvest have agreed to create a local fund manager, King Kuba Capital, S.A., which will be owned at least 20% by local professionals that will be hired. The remaining 80% will be owned by Cenainvest and XSML. The Fund is in conversations with several private sector investors and IFIs. FMO has confirmed its commitment to invest $2.5 million in the Fund and is contemplating $0.5 million in business support services facility. The fund manager has also received expressions of interest from several private investors.

The Fund has targeted $25 million in capital commitments and up to $2.4 million for the business support facility. It is proposed that IFC be: An anchor investor with up to $12.5 million in equity of the Fund; A $0.8 million investor (net of repayments) in the business support services facility that will aim at raising a total of $2.4 million to support Pre- and Post-investment business needs of the portfolio companies, and A $2.4 million grant donor to be awarded by IFC Advisory Services to the fund manager to help defray organization costs, initial fund expenses and start-up costs. This grant will help the fund manager set-up new teams in new markets where no one now meets the financing needs of small firms. This grant will be paid upon meeting deliverables and performance indicators over a five-year period. The IFC Advisory Services also plans to release Business Edge, the SME toolkit and other programs to support the SME communities in these countries.

12.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	12.50

* These investment figures are indicative

The Fund has targeted to open two local offices, one in Kinshasa, DRC and the other in Bangui, CAR. Another office is planned to be opened later in Lubumbashi, DRC.

1. Encourage economic development of SMEs all of which will be located in IDA countries— by investing in 50 high-growth companies which is expected to lead to above average rates of job creation, capacity development and higher tax revenue; 2. Improve companies’ sustainable development by helping implement best practice corporate governance and environmental and social standards; 3. Provide much needed business services support funding to help companies become stronger, and 4. Provide support to a new fund manager that is launching a private equity fund.

WWithout the support of the IFCâ?™s Ventures Program, this Fund would have not been able to be launched. Further, without the benefits of the SME TA facility and the grant for the fund manager, the Fund may not be able to improve companiesâ?™ performance and attract additional investors and become a sustainable platform. It is expected that if the fund manager is successful, there will be an important demonstration effect for other regional fund managers to look for investment opportunities in CAR and DRC.ithout the support of the IFC's Ventures Program, this Fund would have not been able to be launched. Further, without the benefits of the business support services for the Fund/SMEs facility and for the fund manager, the Fund may not be able to improve companies' performance or attract additional investors, potentially becoming a sustainable platform. It is expected that if the fund manager is successful, there will be an important demonstration effect for other regional fund managers to look for investment opportunities in CAR and DRC.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the Fund’s expected portfolio and sectors of investment and determined as the Applicable Performance Requirements (i) the IFC FI Exclusion List, (ii) the applicable National Social and Environmental Laws and Regulations and (iii) the IFC Performance Standards. IFC also reviewed the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). Based on the assessment the Fund Manager will be required to (i) revise the SEMS, prior to commitment, to the satisfaction of IFC to ensure compliance with the Applicable Performance Requirements, (ii) identify responsible, qualified persons to manage and implement the SEMS, (iii) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements, and (iv) submit a periodic report to IFC as per a format to be provided by IFC. Additionally IFC will review the implementation and performance of the Fund’s SEMS for the first three projects, prior to the Fund’s investment, to ensure that the SEMS is robust.