$15.8 M invested by EIB in new IPAE 3 fund to promote entrepreneurship in Madagascar and West Africa
The IPAE 3 fund, managed by Investisseurs & Partenaires (I&P), has received a EUR15 million (US $15.8 million) investment from the European Investment Bank (EIB).
In Africa, the IPAE 3 fund is a cutting-edge, high-impact fund that helps local companies with significant growth potential in strategic areas for the participating nations. Agriculture, nutrition, health, energy, water, industry, and services are some of these essential sectors.
Over 4,000 direct jobs are anticipated to be created, with at least 40% going to women. Additionally, the fund will fully meet the requirements of the 2X Challenge, which supports female entrepreneurs.
Along with Proparco and the West African Development Bank (BOAD), the EIB was one of the first to invest in this fund and hopes to draw in additional public and private investors. Through its support of the fund, the EIB hopes to attract additional investment totaling 4.5 times its initial investment.
In West Africa and Madagascar, where private equity funds have historically encountered major investment obstacles, this marks a turning point in the financing of SMEs. I&P is present locally in Ghana, Senegal, Madagascar, and Ivory Coast. It also covers neighboring countries like Benin and Togo.
Sébastien Boyé, co-CEO of I&P, stated that his company was pleased to maintain its strong relationship with the European Investment Bank, which dates back nearly two decades.
“As one of the first players to make a formal commitment to IPAE 3, the EIB is playing a decisive role in the success of this round of fundraising, along with the other players involved in this initial closing,” he said.
“The commitment that has been made to IPAE 3 demonstrates that there is confidence in our approach and expertise. IPAE 3 has a unique ambition: to grant finance to capable, responsible and innovative businesses that offer solutions to the biggest challenges facing Africa, while supporting economic inclusion, especially that of women.”
In order to support IPAE 3, EIB Vice-President Ambroise Fayolle expressed his satisfaction at signing this new investment with Investisseurs & Partenaires.
“Our aim is to provide finance for startups and to assist them in their development, especially in countries where accessing finance is difficult,” he said.
“By taking action, we are helping to create a more responsible form of entrepreneurship and supporting women entrepreneurs. In this way, we are helping to create jobs and develop the business leaders of the future. These are the key objectives of our finance operation in Africa alongside our Team Europe partners.”
