The Dutch fund manager XSML has invested in Hydrotek SARL, based in Lubumbashi, DRC.

Hydrotek sells pipes, pumps and valves for water and other liquids and provides installation & maintenance services.

The company’s main customers are mining companies and the local water company in Katanga, DRC.

The second largest client groups are construction companies and private customers.

There is currently no industrial production of quality plastic pipes and valves in Katanga province, leaving Congo to rely on imports of pipes, pumps and valves.

Hydrotek distinguishes itself from the market by providing high quality products according to international standards.

Its focus on quality has enabled Hydrotek to become a preferred supplier to many of the large mining companies operating in Katanga province.

With increasing demand Hydrotek needed to invest in larger inventory as well as its own centralized warehouse.

The investment by XSML will be used to build its own warehouse and distribution center.

Another part of the funding will be used to build inventory allowing the company to quicker fulfill orders for a wider range of products from its stock.

Alain Nkongolo, Managing Director of Hydrotek, said: “With the financing provided by the Central Africa SME Fund, Hydrotek can build its own warehouse and increase the range of products available to our customers. Availability of product is critical for our customers. Our new warehouse will further strengthen our preferred supplier status with large mining companies.”

Jarl Heijstee, Managing Partner at XSML, said: “The combination of high quality pipes and service make Hydrotek unique in Congo. Our investment enables Hydrotek to work from one centralized warehouse instead of different locations improving availability of products further. By focusing on quality and service Hydrotek has gained preferred supplier status with many large mining companies in Congo.”

Hydrotek is the twenty third investment made by CASF and its twentieth investment in DRC.

CASF is an investment fund investing in small and medium-sized enterprises in the Democratic Republic of Congo and the Central African Republic.

The fund is based on the belief that sustainable economic development in the fast growing markets of DRC and CAR can be achieved by encouraging entrepreneurship.

Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support.

By stimulating entrepreneurial endeavors, jobs and income are created.

CASF is a $19m fund with 80% allocation to DRC and 20% in CAR.

CASF provides risk capital with an investment size ranging from USD 100,000 to a maximum of USD 500,000.

Investors in CASF are IFC, FMO and the Lundin Foundation.