AfricInvest has received a €10 million ($10.7 million) investment from Proparco, the private sector investment division of Agence Française de Développement (AFD), for its new Small Cap fund, strengthening their ongoing collaboration.

This investment, announced on Monday, aligns with Proparco’s Choose Africa initiative, which aims to support small and medium-sized enterprises (SMEs) across the continent.

“This investment is part of the Choose Africa initiative, which Proparco launched to support SMEs and startups across Africa,” said Jérémie Ceyrac, Proparco’s Investment Director. 

Read also: African Investment Platforms Close Venture Fund at $112 million

“The fund reflects our ambition to strengthen the capacity of African entrepreneurs while addressing economic, social, and environmental challenges sustainably. Our partnership with AfricInvest spans more than 25 years, and we are proud to continue supporting the continent’s economic fabric together.”

Investment strategy and impact

The AfricInvest Small Cap fund, which received this investment, focuses on supporting SMEs in North, East, and West Africa, particularly in sectors such as education, healthcare, and agribusiness. The fund supports enterprises in scaling, improving productivity, and adopting sustainability, prioritising gender equity and climate action alongside financial returns.

Brahim El Jai, Senior Partner at AfricInvest, emphasised the fund’s mission, “This fund builds on our longstanding commitment to empowering African SMEs with strong growth and impact potential. By combining financial investment with our regional expertise, we aim to foster innovation, create jobs, and support climate-aligned strategies in line with the Paris Agreement.”

Read also: Kenyan startup Turaco raises $10 million, aims for 1 billion users

Partnership and broader context

AfricInvest and Proparco have a deep-rooted partnership, with Proparco investing in 15 of AfricInvest’s 19 funds since 1997. This enduring alliance highlights their joint dedication to supporting Africa’s SME sector and tackling global issues like gender inequality and climate change.

Proparco’s commitment to AfricInvest’s funds aligns with its mission to drive sustainable development and empower African businesses with customised financial support.

Another notable development is that AfricInvest has also been involved in the Transform Health Fund, which recently surpassed its target by raising $111 million to support healthcare systems in Africa. This fund, managed by AfricInvest in collaboration with the Health Finance Coalition, aims to scale proven and innovative healthcare models across the continent.