AfricInvest Financial Sector Limited LLC

Equity : December 2013

BIO has invested € 5 M in equity in AfricInvest Financial Sector Limited LLC, a private equity fund investing in financial institutions in Sub-Saharan Africa.

Amount

€ 5,000,000.00

Type of investment

Equity

Development impacts

Local economic growth
Private sector consolidation/innovation
Financial inclusion

Beneficiary locations

Africa: Burkina Faso, Kenya, Madagascar, Mali, Mozambique, Nigeria, Rwanda, Uganda, Zambia, Zimbabwe

Investment field

Investment Companies & Funds

Activity

Financial Institution Fund

Organisation

AfricInvest Financial Sector Limited LLC

Website

https://www.africinvest.com/

Domicile

Mauritius

AFS was launched in 2007 with the aim to contribute to the development of the African financial sector in less developed markets and post-conflict countries, and to enhance the structure and diversify the financial sector in more mature African markets. It does so by investing in following sub-sectors of the financial sector : banks (with a focus on smaller SME banks), non-banking financial institutions with a focus on leasing, insurance companies and microfinance, including greenfield projects.

Development impacts

Local economic growth
The Fund targets micro, small and medium enterprises and will provide mid to long-term capital to financial institutions and improvement of financial inclusion
Private sector consolidation/innovation
Know-how at the fund level: BIO has an active participation in the governance of the fund.

Know-how and technology transfer to investees: The concrete support by the Manager can materialize in many different ways : by reinforcing governance and thereby solving conflicts of interest, by helping in the recruitment of senior management and by organizing needed trainings, by supporting the upgrade of the processes and information systems, by offering guidance in defining a growth strategy and in identifying new products and channels, by intermediating to diversify sources of funding, by assisting in the selection of strategic partners.
Financial inclusion
Improvement of financial inclusion, by increasing the quantity and quality of financial services offered to the local population and businesses.

Mobilisation of savings of clients of the investees

Made possible through this investment

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

Abbey

Nigeria

Abbey Building Society PLC (ABBEY) is one of the leading and most profitable Primary Mortgage Institutions (PMI) in Nigeria. The company currently has nine full operational branches and offers a wide range of mortgage and banking activities to individual and corporate customers. ABBEY is the first mortgage bank in Nigeria to have foreign direct investment and the third most capitalized mortgage bank in Nigeria.

Alios Zambia

Zambia

Leasing services

Alpha West (UAB)

Burkina Faso

Financial services

Banco Mais

Mozambique

The bank started in 1999 as a microfinance cooperative under the name Banco Tchuma. After obtaining a commercial banking license in 2010, the bank gradually expanded its branch network to reach 9 branches in 2014, located in Maputo, the southern and central regions of Mozambique. AfricInvest and Geocapital invested in the bank in 2014 with a view to reposition it as a leading SME bank, renaming it Banco Mais – Banco Moçambicano de Apoio aos InvestmentoS.

Cogebanque

Rwanda

Cogébanque is a Rwandan commercial bank established in 1998 by Rwandan nationals. The bank has a total of 14 branches, guichets and agencies, of which seven are in Kigali and the remaining spread across the country.

EFC Tanzania

Tanzania

Entrepreneur Financial Center Tanzania (EFC Tanzania) is a recently-created licensed deposit-taking microfinance institution in Tanzania. It is part of the EFC network of local microfinance institutions in Africa.

EFC Uganda

Uganda

EFC Uganda is a start-up microfinance institution that was founded in 2011. EFC Uganda was established by DID and AfricInvest, according to the DID model which is similar to the portfolio companies EFC Tanzania and EFC Zambia. The Company was established as a non-regulated institution, while it is currently applying for a deposit-taking license, to be regulated by the Bank of Uganda. The Company is focusing on MSMEs in Kampala and its surroundings.

Family Bank

Kenya

Family Bank is a commercial bank domiciled in Kenya. The Bank's initial target market was the low-income segment comprised of small-scale farmers; salaried staff; micro, small- and medium-sized enterprises (MSME's); youth and women.

Microcred Mali

Mali

Microcred Mali is a micro-finance institution. MCM started in 2013 and offers Micro-loans and SME loans.

Microcred Madagascar

Madagascar

Microcred Madagascar (MCM) is a micro-finance institution. MCM started in 2006 and offers Micro-loans and SME loans. Microcred obtained a banking license and started collecting deposits in Q2 2010.

NMBZ

Zimbabwe

NMBZ is the holding company for NMB Bank. NMB Bank is a commercial bank that offers corporate, retail and investment banking solutions. It operates in Zimbabwe since 1993. AfricInvest invested together with a consortium of investors in 2013.

UAP Holdings

Kenya

UAP Group is a pan-African financial services group with interests in insurance, investment management, property development and investments, securities brokerage and financial advisory.