A first operational and impact evaluation for the 4th anniversary of the fund I&P Afrique Entrepreneurs

Launched in May 2012, the €54 million fund I&P Afrique Entrepreneurs (IPAE) currently counts 25 companies in portfolio, based in twelve Sub-Saharan countries.

This fourth anniversary represents an opportunity for I&P to reflect on the operational status of the fund and the impact performance of the companies supported by I&P’s team.

Support the emergence of twenty promising entrepreneurs in Sub-Saharan Africa

I&P Afrique Entrepreneurs, which targets small and medium companies with financing needs ranging from 300,000 to 1,5 million euros, currently counts twenty-five companies and is characterized by a strong geographical and sectorial diversity. The fund is invested in 12 countries, with a strong proportion of investments in West Africa (56%) and the Indian Ocean (20%) where I&P has developed its local offices (Abidjan, Accra, Antanarivo, Dakar, Douala, Ouagadougou). The companies operate in ten different sectors of activity, including health, renewable energy or transport. The microfinance and agro-industry sectors also represent a substantial part of the portfolio (respectively 27% and 17% of the amount invested).

Most of the companies (75%) are managed by Africans and about a quarter of the companies in portfolio are funded and/or managed by women, which is in line with I&P’s mission to support a new generation of African entrepreneurs

A dual objective: conciliate performance and impact

Since 2012, the fund has committed 22 million euros and conducted so far a total of 25 investments. We observe the strong development of IPAE partner companies, most of them recording a double-digit growth over the last year. Their turnover increased by 25% on average. The fund could make its first exits over the 12-18 months to come.

The launch of IPAE represented the opportunity for Investisseurs & Partenaires to formalize its contributions and objectives in terms of impact and Environmental, Social and Governance (ESG) policy. I&P has been able to better assess and monitor the impacts generated by the companies and the ground, and report regularly this information to its investors and the companies in portfolio.  

I&P collects quantitative and qualitative data each year from the investee companies to analyze the impacts generated on their stakeholders: their employees, clients, suppliers, but also on their local communities and the public authorities. Among the main impacts identified, we evaluated that more than 2 100 jobs have been created or maintained since 2012, that the portfolio companies work with more than 500 local suppliers and count about 60,000 clients. Through their activities, they have generated about €2 million of taxes. The impact policy of the fund is in line with the newly defined UN Sustainable Developments Goals: 70% of them provide goods or services directly addressing SDGs (access to healthcare, improved food security, preservation of natural resources…)

The fund has proven the viability of its model and has contributed, on its scale of operations, to the development issues in Africa. “This good track record confirms our development strategy and encourages us to pursue our efforts with a new fund succeeding to IPAE, so as to continue and develop I&P’s mission in favor of African SMEs and entrepreneurship” asserts Jean-Michel Severino, President of Investisseurs & Partenaires.