AfricInvest Financial Inclusion Vehicle

Equity : December 2017

AfricInvest Financial Inclusion Vehicle (FIVE) is an evergreen investment fund focusing on financial inclusion in Africa.

Amount

€ 10,000,000.00

Type of investment

Equity

Development impacts

  • Local economic growth
  • Private sector consolidation/innovation
  • Financial inclusion

Beneficiary locations

Middle East & North Africa: Morocco
Sub-Saharan Africa: Côte d'Ivoire, Democratic Republic of Congo, Ghana, Kenya, Nigeria, Rwanda, Tanzania, Zambia

Investment field

Investment Companies & Funds

Activity

MFI fund

Organisation

AfricInvest Financial Inclusion Vehicle

Domicile

Mauritius

More investments in

AfricInvest Financial Inclusion Vehicle

  • Equity € 10,000,000.00 (2022)
  • Equity € 3,200,000.00 (2022)

Core target companies will be established African mid-size banks and insurers, as well as microfinance and leasing institutions, with a strategy to expand into the unbanked retail and SME segments, with a special focus on how the ongoing fintech changes in the financial sector could impact these institutions.

The main particularity and innovation of this project is its evergreen character, i.e. no initially fixed end date. The rationale is that more time is needed to get the most out of investments in the financial sector (compared to most other sectors). More particularly, the process to obtain a banking license from local Central Banks can be very long.

Development impacts

  • Local economic growth

    Provision of additional mid to long-term capital to financial institutions which will a.o. enable them to keep up with increasing Capital Adequacy Ratios. This aspect is further reinforced by the fact that there are currently not a lot of equity providers for smaller financial institutions in Sub-Saharan Africa.

  • Private sector consolidation/innovation

    - Market structuring effects through a novel instrument : FIVE will be the first evergreen fund focusing on the financial sector in Africa, capable of offering funding on a longer term than classic closed-end vehicles. Also the specific focus on fintech to create value at the level of the investments is innovative.

    - Institution building and company development of the financial institutions FIVE will invest in through the hands-on approach that characterizes AfricInvest.

  • Financial inclusion

    One of the main targets of the fund is to increase the quantity and quality of financial services offered to the local population and businesses.

Made possible through this investment

Thanks to the direct funding from BIO, the following second-line investments have been made possible.

MFS Africa

K.66.190 Means of payment

A licensed company providing Pan African B2B2C payment infrastructure that provides a single access point to a Pan African payment ecosystem and a large number of use-cases including remittances into and intra-Africa as well as cross-border and local collections and payouts through all major mobile money schemes.

Moove

K.64.91 Financial leasing

Moove is a Nigerian-born global start-up and the world’s first mobility fintech, providing revenue-based vehicle financing and financial services to mobility entrepreneurs. By embedding its alternative credit scoring technology onto ride-hailing, instant delivery, and e-logistics platforms, Moove can use proprietary performance and revenue analytics to underwrite loans to drivers that have previously been excluded from financial services. Moove provides financing for three product categories - cars, trucks and motorbikes.

Raynal Assurances IARD

Burkina Faso

K.65.12 Non-life insurance

RAYNAL Assurances IARD is an insurance company incorporated in 2005 and headquartered in Ouagadougou (Burkina Faso). The Company underwrites a large range of non-life insurance risks associated to automotive, health, accident, fire, transport, and other multi-risks, addressing a clientele composed of both corporate and retail customers. Driven by a culture of service and innovation, RAYNAL Assurances IARD experienced a steady growth over the years to become the third-largest non-life insurer in Burkina Faso with a market share exceeding 13%.

Regic - Royal Exchange General Insurance Company

Nigeria

K.65.12 Non-life insurance

The Company is a non life insurance company that used to be part of the oldest insurance group in Nigeria (1918). Ranked number 6 in the Market in terms of GWP with one of the lowest claim ratio in Nigeria. It has launched its retail strategy through digital channels, targeting in priority the agriculture insurance for the small farmers.

CFG Bank

Morocco

K.64.190 Commercial banking

Commercial bank in Morocco, providing corporate and retail services.

InstaDeep

Tunisia

J.63.99 Other information service activities n.e.c.

Founded in 2014, InstaDeep makes use of AI to help businesses make complex decisions by having developed an expertise in machine learning, reinforcement deep learning, computer vision and predictive analysis offering complete and customized end-to-end solutions.

I&M Rwanda

Rwanda

K.64.190 Commercial banking

Incorporated in 1963 as the first commercial bank in Rwanda, today the Bank is publicly listed on the Rwandan Stock Exchange. The Bank is a subsidiary of I&M Holdings. The bank is a top-tier bank in Rwanda with a strong position in the corporate and higher-tier SME segments, while being a leading bank in mortgage financing.

Prime Bank

Kenya

K.64.190 Commercial banking

A Kenyan commercial bank providing a variety of financial products and services to SME, corporate and retail banking customers. Prime Bank has 21 branches across Kenya and leverages off alternative delivery channels to service its customers. The bank has affiliates in Malawi, Botswana, Mozambique and Zambia and also a Kenyan general insurance company, Tausi Assurance.

Fidelity Bank Ghana Limited

Ghana

K.64.190 Commercial banking

Established in 1998, initially as a discount house, Fidelity Bank obtained its universal banking licence in 2006 and has since grown to be the largest privately-owned Ghanaian bank. Fidelity offers a comprehensive range of innovative products and services in the retail and corporate space, through a steadily growing network of branches and various digital channels.

View more of our investments in this region

TowerCo of Africa

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TowerCo of Africa

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SIMA Commercial & Industrial Solar Green Bond

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SIMA Commercial & Industrial Solar Green Bond

10,000,000.00

  Kenya, Nigeria, South Africa

  29/12/2023

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ACEP Group

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ACEP Group

 4,824.00

  Niger

  28/11/2023

  Subsidy

Alterfin

Investment Companies & Funds

Alterfin

5,000,000.00

  23/10/2023

  Debt

EA Foods Ltd

Enterprises

EA Foods Ltd

 10,448.00

  Tanzania

  09/10/2023

  Subsidy

Poa! Internet

Enterprises

Poa! Internet

13,543.00

  Kenya

  24/08/2023

  Subsidy

Gebana Burkina Faso

Enterprises

Gebana Burkina Faso

 3,000,000.00

  Burkina Faso

  20/07/2023

  Debt

ASA Tanzania

Financial Institutions

ASA Tanzania

7,000,000.00

  Tanzania

  19/07/2023

  Debt

Alterfin

Investment Companies & Funds

Alterfin

 21,500.00

  11/07/2023

  Subsidy