Proparco, the private sector financing arm of Agence Française de Développement (AFD), has announced a €10 million ($10.7 million) commitment to AfricInvest ’s latest Small Cap fund, marking a continuation of their long-standing partnership. This new investment underscores Proparco’s broader strategy to foster inclusive and sustainable growth across Africa, particularly by empowering small and medium-sized enterprises (SMEs).
The AfricInvest Small Cap fund is designed to bolster SMEs, which are widely recognized as key drivers of employment creation and economic growth across Africa. The fund will target SMEs in North, East, and West Africa operating in critical sectors such as education, healthcare, and agribusiness. By offering capital and strategic support, the fund aims to help these enterprises scale operations, improve productivity, and adopt sustainable practices.
Beyond financial returns, the fund prioritizes broader developmental objectives, including gender equity and climate action. It seeks to encourage responsible business practices and inclusivity by supporting enterprises committed to social and environmental sustainability.
This investment aligns closely with Proparco’s 2023–2027 strategy, which emphasizes promoting sustainable development and supporting African businesses through tailored financial solutions. The initiative also qualifies for the 2X Challenge, a global effort to promote women’s economic empowerment by mobilizing capital for projects with a focus on gender equity.
“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. “The fund reflects our ambition to strengthen the capacity of African entrepreneurs while addressing economic, social, and environmental challenges in a sustainable manner. Our partnership with AfricInvest spans more than 25 years, and we are proud to continue supporting the continent’s economic fabric together.”
AfricInvest, a prominent investment firm with a track record of advancing impactful projects across Africa, is leveraging its local and regional expertise to drive the fund’s success. Senior Partner Brahim El Jai emphasized the fund’s mission to nurture high-potential SMEs that are poised to become engines of sustainable transformation.
“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,” said El Jai. “Our goal is to help these businesses generate measurable economic, social, and environmental value while strengthening their positions in strategic markets.”
The AfricInvest Small Cap fund’s focus on SMEs operating in sectors like education, health, and agribusiness highlights its intent to address some of the continent’s most pressing challenges. By supporting enterprises that provide essential services and products, the fund seeks to create a ripple effect of positive economic and social outcomes across the region.
Proparco’s investment reinforces its role as a critical enabler of Africa’s economic development. Its collaboration with AfricInvest, a trusted partner for over two decades, reflects a shared commitment to advancing Africa’s SME sector while addressing global challenges such as gender inequality and climate change.