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Signature(s)

Amount
€ 9,071,940.48
Sector(s)
Services : € 9,071,940.48
Signature date(s)
22/12/2023 : € 9,071,940.48

Summary sheet

Release date
24 July 2023
Status
Reference
Signed | 22/12/2023
20230334
Project name
Promoter - financial intermediary
SEEDSTARS AFRICA VENTURES 1 BOOST AFRICA JUNIOR
SEEDSTARS AFRICA VENTURES INVESTMENT MANAGEMENT SAS
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
USD 10 million (EUR 9 million)
USD 80 million (EUR 75 million)
Location
Sector(s)
Description
Objectives

The operation consists of an equity participation in the junior tranche of Seedstars Africa Ventures 1, a closed-ended venture capital fund investing into high-growth small and medium sized enterprises (SMEs). In detail, the fund focuses on SMEs leveraging digital technologies to deliver services across sectors in Sub-Saharan Africa, primarily West and East Africa, and to a lesser extent, North Africa.

The aim is to support job creation, digitalisation and private sector development, by increasing access to risk capital to local high-growth SMEs. The fund will invest into a diversified portfolio of companies, supporting the value creation of the underlying investees through a hands-on management approach. It will also enhance their Environmental, social, and governance (ESG) standards.

Additionality and Impact

Through this operation, the EIB will be able to support a first-time team launching its first fund targeting investments in SMEs in Africa, with a primary focus on Sub-Saharan Africa. By enhancing access to much needed risk capital to support start-ups and growth SMEs the project is expected to promote economic growth and private sector development, stimulate job creation, encourage local young entrepreneurs supporting solutions with high level of scalability and reduce poverty across targeted African economies. Access to finance - in particular equity finance - and managerial advice are among the most prevalent barriers for the growth of small and mid-sized companies. The provision of growth capital and managerial support through private equity funds has proven an effective strategy to overcome this market failure.


The project will not have relevant negative environmental and social impacts. On contrary, some investments may result in positive environmental and social impacts.


With the EIB commitment, the Fund's terms are expected to be negotiated in line with market practice standards. Additionally, by providing a junior tranche, the EIB's involvement is anticipated to catalyse other investors in a challenging fund raising environment that has been exacerbated by the impact of the Covid-19 pandemic and the conflict in Ukraine.


Environmental aspects
Procurement

The Fund will operate in line with the EIB's environmental and social standards.

N/A

Milestone
Under appraisal
Approved
Signed
12 September 2023
22 December 2023

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Documents

Environmental and Social Data Sheet (ESDS) - SEEDSTARS AFRICA VENTURES 1 BOOST AFRICA JUNIOR
Publication Date
16 Sep 2023
Document language
Main Topic
Lending
Document Number
171430186
Document Focus
Environmental Information
Project Number
20230334
Sector(s)
Countries
Publicly available
Download now

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