AFIG Funds invests in West African packaging company

Private equity firm Advanced Finance and Investment Group (AFIG Funds) and Norfund have announced the joint acquisition of Nouvelle Mici Embaci (NME) to scale up its operations and roll out an ambitious modernisation plan and regional growth strategy.

NMW, a subsidiary of Groupe Carré d’Or, is a packaging company in Côte d’Ivoire and Francophone West Africa. It was founded in 1983 and manufactures corrugated packaging as well as polypropylene bags and provides industrial printing services.

Norfund and AFIG Funds have partnered with Bridge Bank Côte d’Ivoire and Mauritius Commercial Bank (MCB) to provide necessary acquisition financing and working capital facilities to scale the business to its next growth phase.

The co-investors will partner with the existing management team as they continue to grow the business and expand its portfolio of packaging solutions.

”This acquisition will aim to modernise NME’s operations and expand its customer base while instituting international standards in corporate governance and environmental sustainability. We are excited and proud to be part of such a landmark transaction for the industry in Côte d’Ivoire as well as for the West African region,” says Fabrice Mpollo, investment manager in Norfund.

The local corrugated paper market is estimated at 80,000 tonnes annually and is growing at approximately 10% per year, boosted by population growth, change in consumption habits, and higher demand in packaging as a result of industrial investments and growth in hyper-distribution, which indicate positive outlook for market players.