Joliba Capital reaches first close for West and Central Africa fund
The IFC today announced an equity investment of up to €15 million in Joliba Fund I, managed by Abidjan-based private equity firm Joliba Capital, to support the growth of small and medium-sized enterprises in Francophone West and Central Africa, one of the most underserved private equity markets in the world.
IFC’s support includes an equity investment of up to €7.5 million from IFC’s SME Ventures programme and an additional €7.5 million from the Blended Finance Facility of the International Development Association’s Private Sector Window, which helps de-risk investments in low-income countries. In its first financial close, the fund raised €55 million, including from other commercial and development investors such as Proparco, FMO, and the French private equity firm LBO France.
The fund will invest in SMEs in Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Côte d’Ivoire, Mali, Niger, Republic of Congo, Togo, Senegal, and Gabon.
Joliba’s investments will focus on sectors such as consumer products and services, financial services, transport and logistics, agribusiness, business services, health care and education. The fund manager will also provide the SMEs with organisational and operational support, especially in digital transformation and talent management.
”For a first-time fund managers like us, IFC’s support has been crucial in signalling the viability of investments in Francophone West and Central Africa and help us attract development financing institutions and commercial investors,” said Hamada Touré and Yann Pambou, co-founders of Joliba Capital.
IFC’s SME Ventures programme invests in private equity funds focusing on SMEs in underserved private capital markets.
”Through funds like Joliba and our SME Ventures programme, we are helping SMEs – most of them family-owned – improve margins, build brands, and create jobs,” said William Sonneborn, IFC’s global director for disruptive technologies, creative industries, and funds. ”In many cases, especially in countries with nascent private equity ecosystems, IFC is helping create markets as our support help attract other investors with similar interest to create new sources of equity financing for SMEs.”
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