AfDB injects €7m private equity into SME fund in francophone Africa

The Board of Directors of the African Development Bank (AfDB) has approved a €7 million equity investment in I&P Afrique Entrepreneurs SME Fund (IPAE), a project set up for French-speaking sub-Saharan African countries.

The investment is to allow IPAE to increase access to finance and capacity building for small and medium-sized enterprises (SMEs) and small microfinance institutions (SMFIs) in western and central Africa, the AfDB said in a statement.

The bank believes the investment will boost income generation and job creation in the region.

The IPAE Fund, targeting a final closing of €50 million, will seek out high potential SMEs and SMFIs primarily in western and central Africa, according to the AfDB.

The Fund is expected to target SMEs across various industry sectors including healthcare, building materials and agribusiness.

Collectively, the fund’s investee companies are expected to generate more than €170 million of additional taxes, more than €100 million of additional trade and close to 2000 new jobs, the AfDB indicated.

By Ekow Quandzie