The European Investment Bank (EIB) has signed a commitment of $15m with the SPE Africa Industrialization Fund I (AIF I), which seeks to contribute to the development of the private sector in North Africa. 

The EIB commitment was signed under the Southern Neighbourhood Private Equity Risk Capital Facility, a €71.3m facility which aims to support private equity fund investments in the Southern Neighbourhood countries. 

The facility blends the EIB’s own resources with European Commission resources under the Neighbourhood Investment Facility.

“In the context of the Southern Neighbourhood Private Equity Facility, the European Investment Bank seeks to support private equity investments in the Southern Neighbourhood countries. The Bank’s equity participation in the Africa Industrialization Fund I is a good example,” a spokesperson from the European Investment Bank Press Office told Africa Global Funds.

“The Fund will target investments in small and medium-sized companies with high potential to grow and become regional players. Improving access to equity and debt financing is essential in North Africa, It plays an important role in job creation.“ 

AIF I is a generalist private equity fund targeting primarily growth capital investments in SMEs and mid-market companies mainly in North Africa, with a focus on Egypt, Morocco and Tunisia. 

The fund’s first closing reached $80m.

The fund manager, SPE Capital Partners, will adopt a hands-on value-adding investment strategy and will seek to acquire equity stakes in enterprises with robust growth potential in important sectors such as education, healthcare, manufacturing and services to meet their investment needs.

The fund’s portfolio companies are anticipated to grow regionally and contribute to strengthening trade between northern and sub-Saharan African countries, while creating over 1,000 direct new jobs.

The Risk Capital Facility for the Southern Neighbourhood (RCF-SN) provides access to equity and debt financing to SMEs in the Mediterranean region in order to support private sector development, inclusive growth and private sector job creation. 

Set up by the European Commission and the EIB, the RCF-SN builds on the success of the ENPI-FEMIP Risk Capital Mandate 2007-2013, which was fully deployed despite the unprecedented geopolitical turmoil in the target region.