The European Investment Bank (EIB) has announced a €15 million ($15.7 million) investment in I&P’s Afrique Entrepreneurs 3 (IPAE 3), a new fund managed by Investisseurs & Partenaires (I&P) that will target small and medium-sized enterprises (SMEs) and tech-enabled startups in West Africa and Madagascar. The financing agreement was signed at the EIB Group Day in Luxembourg by Ambroise Fayolle, EIB Vice-President, and Jeremy Hajdenberg and Sebastien Boyé, Co-CEOs of I&P.

IPAE 3 aims to support businesses operating in some of the region’s least developed economies. The fund’s investment strategy focuses on impact, inclusion, and access to essential goods and services, with a particular emphasis on job creation. It is anticipated that the fund will generate over 4,000 direct jobs, with at least 40% earmarked for women. The fund is also fully aligned with the 2X Challenge criteria, which promotes investment in women-led businesses.

The EIB’s commitment, backed by the ACP Trust Fund, aligns with the EU’s Global Gateway strategy, which seeks to boost sustainable development through strategic investments. IPAE 3 will provide individual investments ranging from €1 million to €5 million, targeting 15 to 20 companies across a diversified range of sectors. The overall target fund size is between €60 million and €80 million.

I&P, a Paris-headquartered impact investing firm established in 2002, has a long track record of supporting early-stage businesses in sub-Saharan Africa. With six offices across the continent, I&P combines catalytic capital with capacity building and local fund management expertise. The firm’s IPDEV 2 initiative, a €24 million evergreen investment vehicle, provides cornerstone investments and technical support to funds like IPAE 3.

This latest investment fund builds on I&P’s existing network of impact funds across Africa, including Fako Capital in Cameroon, Comoé Capital in Côte d’Ivoire, and Teranga Capital in Senegal. These funds address the financing gap faced by many SMEs, which often struggle to access capital from traditional banks and larger investors. Beyond providing funding, I&P offers a comprehensive toolkit for fund managers, covering due diligence, financial reporting, and environmental, social, and governance (ESG) considerations, ensuring that investee companies are well-equipped for sustainable growth.

I&P’s approach extends beyond simply providing capital. Through its I&P Acceleration in the Sahel programme, for instance, businesses gain access to seed funding, technical assistance, and capacity-building initiatives. This support can be crucial for SMEs looking to scale their operations and create jobs. For example, Fako Capital recently supported Lakelle, a Cameroonian textile company, enabling it to purchase new equipment and improve its branding.

The focus on job creation, particularly for women, and the emphasis on inclusion are central to I&P’s investment philosophy. The firm believes that supporting SMEs is essential for strengthening local economies and driving sustainable development across Africa. By investing in funds like IPAE 3, the EIB is partnering with I&P to address these challenges and contribute to a more vibrant and inclusive business environment in the region.