This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
Africinvest Fund IV, LLC (FMO-57044)

Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 35.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 35.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ FMO website

Updated in EWS Nov 24, 2019

Disclosed by Bank Nov 21, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

WHO IS OUR PROSPECTIVE CLIENT?

AfricInvest was founded in 1994 and is one of the most experienced private equity investors on the African continent. To date, AfricInvest has invested in more than 150 companies across 25 countries and has raised USD 1.5b across 18 funds, and now aims to raise USD 500m for AfricInvest Fund IV.

WHAT IS THE FUNDING OBJECTIVE?

AfricInvest aims to make growth-capital investments in mid-cap African companies that are well positioned in their local markets and are posed to scale up operations as they expand outside their borders to become "regional champions". By investing in AfricInvest IV FMO can contribute to the economic growth and private equity market development across the African continent.

WHY DO WE WANT TO FUND THIS PROJECT?

This investment fits FMO's strategy, deepening a relationship with an existing partner in African private equity investing, and contributes further to FMO's ambition of being a preferred partner for growth in emerging markets.

ENVIRONMENTAL AND SOCIAL RATIONALE

Based on the risk profile of the pipeline companies, the preliminary E&S categorization is B (medium - high risk). AfricInvest has shown a solid commitment towards E&S and has a strong environment and social management system in place as well as an experienced and dedicated ESG manager in its team. AfricInvest conducts rigorous ESG due diligence during its investment process and develops E&S action plans for its portfolio companies to bring them into compliance with the IFC Performance Standards.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works