This investment will help diversify sources of capital to finance business growth.
Financing: The European Bank for Reconstruction and Development (EBRD) announced on Thursday its commitment to pay up to $40 million into a support fund for mid-cap companies in Morocco, Egypt and Tunisia.
The European Bank for Reconstruction and Development (EBRD) has committed up to $40 million to SPE PEF III (PEF III), a new fund established by SPE Capital, to support mid-cap companies in Morocco, Egypt and Tunisia. In a statement issued on Thursday, 27 June, the EBRD said PEF III will seek to generate long-term capital gains through equity and quasi-equity investments in companies in these three countries, while retaining flexibility to also invest in targeted countries in sub-Saharan Africa.
Through this investment, the EBRD intends to contribute to the resilience of financial markets and increase the competitiveness of local businesses by making private equity an alternative source of financing in North Africa. The EBRD notes that this investment will diversify sources of capital to finance business growth. The fund will seek to invest in eight to twelve companies, in sectors resilient to market shocks and with high growth potential, such as manufacturing, production and processing of goods, business services, healthcare health care, pharmaceuticals and private education services. Director of Private Equity Fund Investments at the EBRD, Anne Fossemalle said: “SPE Capital will leverage its established presence in local offices in Tunis, Casablanca, Cairo and Abidjan to support African companies to reach their full operational potential, deliver successful financial returns to investors and improve the quality of life on the continent. For his part, Nabil Triki, Senior Partner and Managing Director of SPE Capital, said: “We are grateful to the EBRD for its unwavering support, which has proven instrumental to the private equity funds we manage and to the development of our business more generally.
This commitment not only allows us to generate substantial returns for the benefit of our investors, but also to produce a positive and lasting impact on the markets in which we invest. Together, we promote sustainable growth and development that benefits communities and economies alike. This partnership illustrates our shared vision of promoting the development of resilient, high-growth businesses in North Africa and beyond. Note that since 2012, the EBRD has invested more than 19 billion euros in 356 projects in Egypt, Morocco and Tunisia, in various sectors of these economies.
