EBRD Backs Mid-Cap Growth in North Africa with $80 Million Investment

The EBRD is investing up to US$80 million in North Africa Fund III (NAF III) to support mid-cap companies in Egypt, Morocco, and Tunisia, targeting sectors like healthcare, education, and consumer goods. The fund aims to raise a total of US$300 million while also receiving technical assistance for a gender action plan, enhancing the economic landscape for these regions.

The European Bank for Reconstruction and Development (EBRD) is enhancing its support for mid-cap companies in Egypt, Morocco, and Tunisia through a cornerstone investment of up to US$80 million in North Africa Fund III (NAF III), which is spearheaded by RMBV, an independent fund manager. NAF III aims to facilitate long-term capital growth via equity investments in mid-cap enterprises across the region, with a target funding goal of up to US$300 million following its initial closing.

The investment from EBRD not only provides financial backing but also includes technical assistance for RMBV, particularly focusing on the development of a gender action plan. The fund plans to focus primarily on sectors such as healthcare, education, financial services, and consumer staples, capitalizing on North Africa’s robust consumer dynamics to drive sustainable economic growth.

This collaboration reflects a mutual commitment to bolster the private equity market in North Africa. Both EBRD and RMBV envision supporting middle-market businesses to grow into industry leaders while providing attractive returns for investors. EBRD’s involvement is expected to catalyze further investments from both public and private sectors in North African economies, signifying a strategic approach to economic enhancement in the region.

The investment strategy of RMBV will prioritize mid-cap companies with potential for growth, effective management, and resilience against economic fluctuations, thus positioning these companies to contribute positively to regional development.

Mid-cap companies play a crucial role in the economic landscape of North Africa, contributing to job creation and fostering innovation. The EBRD’s strategic investment in NAF III reflects a recognition of the need to support businesses that are often underserved in investment terms. The partnership with RMBV aims to transform promising mid-sized enterprises into market leaders, ultimately enriching the broader economic environment in these countries.

The EBRD’s commitment of up to US$80 million to North Africa Fund III represents a significant investment strategy aimed at bolstering mid-cap companies in Egypt, Morocco, and Tunisia. Through this partnership, both the EBRD and RMBV are poised to enhance economic growth, promote sustainable practices, and attract additional capital to the region, thus setting the stage for long-term prosperity for local businesses.

Original Source: www.ebrd.com