PARTECH AFRICA VENTURE CAPITAL FUND II

Promoter – Financial Intermediary

PARTECH PARTNERS

Location

• Regional - Africa

Description

The proposed operation consists of an equity participation in Partech Africa II ("the Fund"), a venture capital fund focusing on start-ups and high-growth small and medium-sized enterprises (SMEs) active in the digital and technology sectors in Africa.

Additionality and Impact

The operation concerns an investment in Partech Africa II, a EUR 230mn investment fund targeting small and medium enterprises (SMEs) in Africa and contributing towards addressing the market failure of imperfect information and the ensued obstacles to access to finance that SMEs are confronted with when applying for funding. This operation is in line with the European Commission's priority to promote jobs and sustainable and inclusive growth. It is expected to contribute to the European Investment Bank's (EIB) objective outside the EU for private sector development and job creation. In terms of jobs, the Fund is expected to support job creation, including among the youth and women. The EIB commitment is expected to motivate the participation of other investors and to have a strong catalytic effect.

With the EIB commitment, the Fund's terms are expected to be negotiated in line with best market practice standards. Furthermore, EIB's participation would ensure the adoption of best practices in areas of sustainable development and governance. EIB will provide input into the Fund Manager's policies on environmental and social matters.

Thanks to EIB, the Fund Manager is also in the process of incorporating a gender lens into its investment strategy and EIB´s contribution is considered key due to the Bank´s leadership in gender equality. 

Objectives

The operation concerns a participation in Partech Africa Venture Capital Fund II, a closed-end venture capital fund. The fund will target local start-ups led by young and local entrepreneurs in the digital and technology sectors in Africa. The fund is the successor fund of Partech Africa Fund I, in which the EIB invested in 2017. The first fund has been successfully deployed and the new fund will pursue a similar strategy, leveraging on the strong team's knowledge and experience. As proven in the past, the fund manager will create value through a hands-on management approach, driving the growth and profitability of investee companies and enhancing enterprise skills, governance as well as environmental and social standards.

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

EUR 45 million

Total cost (Approximate amount)

EUR 230 million

Environmental aspects

The fund's operational guidelines provide for environmental and social due diligence of investee companies according to guidelines acceptable to the Bank.

Procurement

Not applicable.

Status

Signed - 16/12/2022