Tunis, Tunisia, December 5, 2017—IFC,
a member of the World Bank Group, is investing €15 million in a new private
equity fund by AfricInvest, a leading private equity fund manager, to help
expand access to finance for small and medium enterprises in North Africa.
The investment is part of a larger effort to support economic growth and
Globally, the Middle East and North Africa
region ranks low in terms of lending to small and medium enterprises (SMEs)
which form the backbone of the economy and are crucial for job creation.
IFC’s financing will help Maghreb Private
Equity Fund IV to invest in up to 15 companies primarily in Tunisia, Algeria,
Morocco, and Egypt.
“IFC is a long-time partner of AfricInvest
and IFC’s repeat participation in our new fund will send a strong vote
of confidence to a range of investors, including those in the private sector”
said Aziz Mebarek, AfricInvest founding partner. “We are looking forward
to providing much-needed access to finance to SMEs to help them push beyond
the boundaries of their countries and into new markets.”
Private equity investments are crucial for
the region’s development and stability as they help create new jobs, drive
economic growth, and encourage further investments in related sectors.
AfricInvest has already invested in about 136 companies and generated over
13,000 direct jobs across its platform of investment vehicles.
“AfricInvest has been instrumental
in promoting the private equity industry across the region,” said Mouayed
Makhlouf, IFC Director for the Middle East and North Africa. “Through
this new investment, IFC continues to play a counter cyclical role. It
is part of our broader work in the region to support small and medium enterprises
and help them create jobs.”
IFC’s work in MENA is designed to help to
address the region’s most pressing development challenges. By partnering
with private sector companies, we aim to promote job creation, increase
access to finance, and support up-and-coming entrepreneurs.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY17, we delivered a record $19.3 billion in long-term
financing for developing countries, leveraging the power of the private
sector to help end poverty and boost shared prosperity. For more information,