Cairo, Egypt, March 22, 2023—To support the development of medium-sized companies in Africa, with a special focus on firms run or led by women, IFC today announced that it will invest in the first close of Mediterrania Capital Partners' Mediterrania MC IV fund.
Mediterrania IV will provide essential growth capital to medium-sized enterprises working in the healthcare, fast-moving consumer goods, financial services, and manufacturing sectors, all sectors vital to the development of African economies.
IFC will make an equity investment of up to €25 million in the fund, with the option to invest an additional €20 million. IFC's long-standing partnership with Mediterrania represents the organizations' shared strategy of supporting medium-sized enterprises in Africa, helping them grow, reach new markets, and create jobs.
The fund will invest mostly in North Africa, with up to 25 percent of its capital allocated to West and Central Africa. With a target size of €350 million, the fund will support the expansion of dynamic, growing companies with an annual turnover of between €20 million and €300 million.
The fund will invest at least 25 percent of its capital in businesses owned or led by women. In both the Middle East and Africa, only six percent of all private equity capital is allocated to women-led businesses.
"We are very happy to continue to count on IFC's support to our funds," said Albert Alsina, Founder and CEO of Mediterrania Capital Partners. "With IFC, we share the same objectives to achieve solid returns and liquidity combined with a strong commitment to deliver real and measurable impact on societies and the environment. Thanks to IFC's trust in our investments, we are helping thousands of people in Africa to have a better life."
"IFC's partnership with Mediterrania is supporting the growth of dynamic medium-sized enterprises, important drivers of growth in economies across Africa," said Sérgio Pimenta, IFC Vice President for Africa. "This fund will bring much-needed capital to young businesses, helping them create jobs, reach new markets, and provide goods and services across a number of sectors."
"This signing ceremony supports IFC efforts with Mediterrania to boost development in manufacturing, finance, and healthcare not only in Egypt but also in north and sub-Saharan Africa, which compliments the World Bank Group's Country Partnership Framework (CPF) that addresses regional integration, while unlocking opportunities in Africa. Through this partnership, there is more potential to share knowledge and success stories within the continent to accelerate economic growth and poverty reduction, as we work to create an enabling business environment, in collaboration with the private sector," said Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat.
Mediterrania takes a hands-on investment approach, with a local presence in Morocco, Egypt, and Côte d'Ivoire, providing its portfolio companies with financial, strategic, and operational support to help them become national or regional leaders. Mediterrania Capital's portfolio companies employ more than 20,000 people.
IFC will also provide training and advisory support to help Mediterrania improve the gender diversity of its investment team and portfolio companies.
The new investment is IFC's third commitment to funds managed by Mediterrania Capital. IFC previously invested in Mediterrania II in 2013 and Mediterrania III in 2017.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
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About Mediterrania Capital Partners
Founded in 2013, Mediterrania Capital Partners is a Private Equity firm focusing on growth investments in SMEs and mid-cap companies in Africa. The firm invests in consolidated and growing companies with an annual turnover of €20 million to €300 million and expansion strategies into North and Sub-Saharan African markets.
Headquartered in Malta and with offices in Abidjan, Barcelona, Cairo, Casablanca and Mauritius, the company takes a proactive, hands-on approach to implementing the growth strategy of its portfolio companies by driving their Value Creation and ESG processes.
The Mediterrania Capital Partners Group is a regulated financial investment manager licensed by the Malta Financial Services Authority (MFSA), the Moroccan Capital Market Authority (AMMC), the Financial Services Commission (FSC) in Mauritius and the Comisión Nacional del Mercado de Valores (CNMV) in Spain.
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