NORTH AFRICA – CDC Group plc, the UK’s development finance institution and impact investor, has announced a €25 million (about 27.59 million) commitment to Mediterrania Capital Partners III (MCP III), a generalist fund primarily targeting investments in North Africa.

“Our investment in MCP III will support well-established local firms that demonstrate strong potential for growth to become regional leaders, providing the capital and expertise for them to expand.

This investment allows  us to begin a partnership with a team which has the potential to become a leading mid-cap pan-African fund manager,” said CDC’s Head of African Funds, Clarisa De Franco.

North Africa is home to a new generation of entrepreneurs, some of whom have longstanding roots in the region, and others who are taking advantage of new opportunities offered by burgeoning  regional growth.

However, lack of finance is a persistent barrier for business owners seeking to grow their companies both regionally and internationally.

“We are very excited to have  CDC Group joining Mediterrania Capital III, our third fund with a focus on SMEs and mid-cap companies in Africa.

Thanks to CDC and the other investors’ contributions we will be able to continue helping local entrepreneurs to build businesses with strong foundations and help them reach their next level of growth,” noted Albert Alsina, Founder and CEO, Mediterrania Capital Partners.

In turn this will help create new direct and indirect jobs, particularly for semi-skilled and unskilled workers in a region where youth unemployment is high.

Mediterrania Capital Partners seeks to create value through sustainable and socially responsible investments that improve economies and the life of local communities in Africa.

MC III has already invested in five companies in Morocco, Tunisia, Egypt and Côte d’Ivoire, in fast-growing sectors such as construction, healthcare, microfinance and retail.

Some of the companies that have benefited from MC funds include Cairo Scan, a radiology and lab services provider in Egypt, and COFINA, a provider of financial services predominantly active in Cote d’Ivoire.

CDC is committed to investing £2 billion in Africa by 2022 by supporting high growth sectors across the continent.

 As part of this, CDC is playing a key role in alleviating the constraints on access to finance. The partnership with MCP is a considerable  step forward in addressing this challenge.