CONVERGENCE PARTNERS DIGITAL FUND III

Projektträger – zwischengeschaltetes Finanzinstitut

PRIVATE ENTITY(IES)

Ort

• Regionalvorhaben - Ostafrika
• Regionalvorhaben - südliches Afrika
• Regionalvorhaben - Westafrika

Beschreibung

The proposed operation concerns an equity participation of up to EUR 15 million or its USD equivalent (c. USD 17.5 million) in Convergence Partners third private equity fund focusing on high-growth digital infrastructure companies throughout Africa.

Additionality and Impact

The EIB's financial support will facilitate investment in the digital sector throughout Sub-Saharan Africa. Firms in this sector are often young, and small in size. In addition, the sector is relatively new. These factors mean that it is difficult to access traditional sources of finance.

Traditional financiers are particularly cautious in the context of the COVID-19 crisis. This operation will support investment in the sector, unleashing the potential of African firms to create jobs and support economic growth as the continent recovers from the COVID-19 crisis, especially in a sector and geography in which the private equity industry remains underdeveloped.

As such, the Fund's proposition provides a good fit with the EU policies, notably in terms of private sector and financial market development as well as employment.

The EIB contribution is considered as particularly high, considering the high value added from the EIB to the Fund in terms of the catalytic effect, and aligning with high standards.

Ziele

The proposed operation concerns an equity participation in a private equity fund focusing on equity and quasi-equity investments in high-growth digital companies throughout Africa. The fund has a target size of USD 250 million and will pursue growth investments in digital and ancillary opportunities. The fund is expected to contribute to several Sustainable Development Goals (SDGs), including SDG 9 (industry, innovation and infrastructure) and SDG 8 (decent work and economic growth). It should contribute indirectly to ending poverty (SDG 1), and investee companies, by providing goods and services to local populations, may contribute to sector specific SDGs such as SDG 3 (good health and well-being), SDG 4 (quality education), SDG 10 (reduced inequality) and SDG 11 (sustainable cities and communities).

Kommentar(e)

N/A

Sektor(en)

• Telekommunikation - Information und Kommunikation

Vorgeschlagene EIB-Finanzierung (voraussichtlicher Betrag)

USD 18 million (EUR 14 million)

Gesamtkosten (voraussichtlicher Betrag)

USD 250 million (EUR 206 million)

Umweltaspekte

The Bank will ensure that the project meets the social and environmental standards of the EIB and that the fund's operational guidelines provide for complete environmental and social due diligence of investee companies.

Auftragsvergabe

The Bank will require the fund to ensure that the implementation of projects conducted by investees will be done in accordance with the Bank's Guide to Procurement. Under these conditions, the procurement procedures to be followed by the Promoter are suitable for the project and satisfactory to the EIB.

Projektstatus

Unterzeichnet - 13/07/2021