The EBRD is injecting a substantial budget to support businesses in North Africa. The relevant fund is designed to generate long-term capital gains through investments in equity and quasi-equity.
The European Bank for Reconstruction and Development (EBRD) announced on Thursday a strategic investment aimed at strengthening mid-cap companies in Tunisia, Egypt and Morocco. The EBRD has thus committed to paying up to $40 million into the SPE PEF III fund, created by SPE Capital, an investment company specializing in Africa and the Middle East. The SPE PEF III fund is designed to generate long-term capital gains through investments in equity and quasi-equity.
By targeting mid-sized companies in these three North African countries, the fund aims to diversify and strengthen sources of capital, providing a crucial financing alternative in the region. This fund also retains the flexibility to invest in other sub-Saharan African countries, maximizing opportunities for growth and economic resilience.
This EBRD commitment meets several key objectives. First of all, it is about strengthening the resilience of financial markets by introducing equity as a source of financing, allowing local businesses to better withstand economic shocks. Next, the fund aims to increase the competitiveness of local companies in the global market, making them more able to grow and innovate.
Finally, by broadening the sources of available capital, the EBRD facilitates access to the funds needed for business growth. It is worth noting that the SPE PEF III fund plans to invest in eight to twelve companies operating in sectors with high growth potential and resilience to market fluctuations. Target sectors include manufacturing, production and processing of goods, business services, healthcare, pharmaceuticals and private education services.
Sami Nemli / ECO Inspirations
