The French impact investment firm Investisseurs & Partenaires raised €21 million ($25 million) to launch and seed other impact funds in Africa.
Investisseurs & Partenaires’ goal for its second I&P Développement fund is to launch 10 funds that will provide €20,000 to €500,000 in financing to 500 small businesses on the continent. Farmers, agribusinesses, and women business owners are its focus.
The mission for the fund, or IPD2, differs from I&P’s €11 million first Développement fund, which invested directly in small businesses.
Five funds have already been launched through IDP2, one each in Senegal, Cote d’Ivoire, Burkina Faso, Madagascar, and Niger. These funds have raised €19 million—or €3 for every €1 IDP2 invested—from 37 other investors, more than 85% of whom are from Africa. The funds have collectively made 10 investments so far.
IPD2 is backed by the African Development Bank, BNP Paribas, the Adolf H. Lundin Charitable Foundation, Ceniarth, Soros Economic Development Fund and FISEA, an Africa-focused fund managed by French development finance institution Proparco. The fund reached a final close three years after its $11 million first close.
USAID, World Bank, Proparco, and Cooperation de Monaco are among backers of IDP2’s €19 million grant-based technical assistance facility.