XSML, an independent private equity fund manager active in Central Africa, has invested in Ets Lejack (Lejack), a toilet paper business based in Kinshasa, DRC, through the Central Africa SME Fund (CASF).

Lejack also owns two printing shops in Kinshasa Lejack Print and is involved in production of candles.

However, the financing provided by XSML will be used to expand the toilet paper activities.

Jarl Heijstee, Managing Partner at XSML said: “Lejack is a very good example of a Congolese company that produces a basic consumer product, toilet paper, with good quality at an affordable price. Our investment enables Lejack to scale its production, making its product available to a larger part of the population.”

Lejack imports raw material and produces affordable toilet paper in different packages and sizes for the Kinshasa population.

Lejack toilet paper differentiates itself by producing a good quality but affordable toilet paper.

With a growing population and a growing middle class, demand for Lejack products will increase.

Currently the Democratic Republic of Congo (DRC) imports large amounts of toilet paper as there is limited local production, which is focused mainly on the lower income market.

The investment by CASF aims to provide a good quality toilet paper that can partly substitute the import of toilet paper.

With increasing demand from consumers Lejack needs to invest in larger inventory of raw material as well as increase the capacity of its production site, warehouse and distribution network.

The production site will be enlarged while being refurbished with a new lay-out enabling more efficient use of the site.

Leon Pongombo, Managing Director of Lejack, said: “With the financing provided by the Central Africa SME Fund, Lejack can refurbish its warehouse space and increase working capital. With a better lay-out of the production facility and of the ability to purchase more raw material we are able to increase production and sales significantly.”

Lejack is the 29 investment made by CASF, an investment fund investing in small and medium-sized enterprises in the DRC 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.

The fund provides risk capital with an investment size ranging from $100,000 to a maximum of $500,000.

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

XSML is currently raising its second fund, the African Rivers Fund.