SINERGI Niger exits from 2 companies of its portfolio

SINERGI is an impact investment company founded in Niger in 2007 by IPDEV. Its investment strategy has been very entrepreneurial: SINERGI invests exclusively in start-ups and early-stage small growing businesses (SGBs), most of which are in formalization or still in the informal sector. Along with long-term finance in the form of minority equity participations and shareholders loans, SINERGI offers very close management coaching to support their formalization and growth.

Despite the high risk of such an investment strategy, the portfolio is performing well, with an average annual revenue growth of 40%. In 6 years, SINERGI has built an investment practice and a rare expertise in supporting and monitoring entrepreneurs.

With these two exits, SINERGI successfully completes a first cycle of investments: 

 UNIFAM is a steel manufacturing company that produces agro-equipment and school furniture in Maradi, a second-tier Nigerien city 400km away from the capital. SINERGI has invested EUR 46,000 in UNIFAM in 2008, taking a minority shareholding position and a seat at the Board as well as granting a long-term shareholder’s loan. Before SINERGI’s investment, UNIFAM was a small informal business with annual sales of EUR 30,000. After 5 years of support and two additional loans, UNIFAM has grown its sales 8 times, hired 13 employees and reached a good and stable profitability. UNIFAM regularly wins tenders for international agriculture and education donors, an activity started at the initiative of SINERGI. Its growth is trickling down to small manufacturers in the locality and UNIFAM has played an important role in structuring its value chain.

ETC use millet, sorgho and rice to make dégué, a local specialty that ETC packs and commercialises locally. Created in 2000, the company became a SARL in 2009. Thanks to SINERGI’s investment, ETC was able to build up a one-year stock of cereals, build a workshop and purchase new production units. Above all, it has helped them consolidate and formalize their activity and establish an efficient accounting system.  

SGBs in SINERGI’s portfolio have generated strong impacts on the Nigerien economic fabric. They can be considered indirect impacts of Sinergi:

• 200 jobs have been created since 2008, with an average monthly wage of CFAF 80 000.
• 177 employees have been trained since 2008.
• SGBs in SINERGI’s portfolio have sourced goods and services from 130 Nigerien suppliers, for a total annual amount of CFAF 110 million in 2012.