United Capital Plc, a leading African investment
banking group, has partnered with global financial and corporate institutions
to set up a Franco-African Investment Fund (FFA), with investible funds of 77 million euro. The aim of the fund is
to accelerate the growth of innovative and entrepreneurial
African and French small
and medium scale enterprises (SMEs) with development
projects on both continents. It is the first cross border investment fund
dedicated to the development of African and French SMEs, and will have a
lifespan of 10 years.
The agreement to set
up the fund was signed in Bamako, Mali on Saturday at the sideline of the
Franco African Summit which was witnessed by the Malian President Ibrahim Boubacar Keita, French President Francois Hollande amongst other
global leaders in the private and public sectors. Bunmi Akinremi, The
Deputy Group CEO of United Capital Plc, signed on behalf of United Capital, a
limited partner on the French Africa Fund.
Other investors in
the Franco-African Investment Fund apart from United
Capital include: Societe Generale Orange, BpiFrance,
Africinvet, Caisse Nationale de Prevoyance Sociale of CDI, Proparco (AFD),
SAHAM from Morocco, Financecom, the pension fund of the Central Bank of Kenya
and other private investors in Kenya. The
fund is sponsored by BpiFrance and Africinvet.
Beyond financial
performance, particular attention will be paid to the positive impact of the
Fund’s investments in terms of governance, transparency, job creation, and
respect for social and environmental values.
The participation by
United Capital is considered symbolic as it portends a strategic inroad into
the continent, which would see it play big in an emerging continental economy.
According to Akinremi, ‘The French government wants to explore growth markets
and Africa has been identified as another area of growth. United Capital is
keen to encourage the expansion of economic opportunity for Africa’. The Group
Chief Executive Officer Oluwatoyin Sanni explained, “United Capital is
committed to expanding its investment horizon and identifying prime
opportunities to grow returns for its investors not just in Nigeria but on the
African continent. The purpose of the fund aligns with what United Capital
seeks to achieve in Africa”
The Fund will be
split into half, with 50% to be invested in French SMEs who have interest in
doing business in and with Africa and the other 50% will be invested in African
SMEs. FFA will invest primarily in African SMEs with high growth
potential in order to create champions of regional and even continental
statures.
Beyond capital contribution, the Fund managers will assist French
companies to grow in Africa and, conversely, African companies in their growth
strategy in France and Europe.
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