Washington, D.C., July 3, 2008—IFC,
a member of the World Bank Group, has committed to invest in the Atlantic
Coast Regional Fund, the first private equity fund managed by local professionals
with a primary focus on Francophone Africa. This will support the growth
and regional expansion of small and medium enterprises and mid-cap companies,
most of which have annual revenues of around $50-75 million.
With IFC’s support of $15 million,
the Atlantic Coast Regional Fund made its first close with $75 million.
About a third of its portfolio will be invested in Francophone Africa’s
small and medium enterprises, and the remainder in mid-cap companies. The
fund, which has its management team based in Dakar, expects to raise an
additional $75 million from several private investors in subsequent closings.
Papa Ndiaye, CEO of the Atlantic Coast
Regional Fund, said, “IFC’s support for this new private equity team
has allowed us to reach our funding targets and will enable us to expand
our reach across Francophone Africa. We are also pleased to be working
with IFC to implement best practices in corporate governance and environmental
standards within the fund and portfolio companies. This is particularly
important because at the heart of the investment strategy of the fund is
a strong value added approach, which is very helpful for SMEs.”
Aida der Hovanessian, IFC Country Manager
in Dakar, said, “Our support for the Atlantic Coast Regional Fund aligns
with our regional strategy to develop SMEs and the local institutions that
finance them. By investing in such new private equity funds, IFC can help
meet the long-term financing needs of many local companies.”
Haydee Celaya, IFC Director for Private
Equity and Investment Funds, said, “We have invested 32 percent of our
fiscal 2008 annual program for funds in Sub-Saharan Africa. Our primary
focus is on new fund managers, particularly those with a mandate to invest
in SMEs and mid-cap companies. We are pleased to continue this strong
record of investing in the region with our support for ACRF.”
IFC, a member of the World Bank Group, fosters sustainable economic
growth in developing countries by financing private sector investment,
mobilizing private capital in local and international financial markets,
and providing advisory and risk mitigation services to businesses and governments.
IFC’s vision is that people should have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.