IMPACT REPORT 2018 - AfricInvest
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IMPACT REPORT 2018
Imp act Report
2
Impact Report
Table of contents
5 Introduction
7 Thoughts from The Keynote Speaker 2018
11 About AfricInvest
15 A
fricInvest Stories : Supporting Entrepreneurship
Across Africa
33 AfricInvest Stories : Fostering Local Innovation
55 A
fricInvest Education Portfolio : Building
a Solid Ground for The Entrepreneurs of Tomorrow
67 CSR Initiatives
75 AfricInvest Impact Highlights 2017
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Imp act Report
Mission
By positioning our investment strategy and
dedicating our business to supporting the
growth of small and medium entreprises (SMEs)
and the private sector accross the African
continent, we have committed to a journey
of achieving positive social,economic and
environmental impact without compromising on
expected financial returns.
4
Impact Report
Introduction
About the report
Africa is becoming home to dynamic innovation hubs. The
start-up ecosystem, somewhat lagging behind a decade ago,
is growing at a significant rate, as entrepreneurs are leveraging
new technologies and digital strategies to tackle the continent’s
fundamental challenges. Focused on development and poverty
alleviation, Africa is the latest continent to experience a start-
up boom. Improvements in education are essential for Africa’s
innovative transition and for future entrepreneurs to succeed.
In this Impact Report, AfricInvest’s team demonstrates its
commitment to enhancing Local Innovation, Entrepreneurship
and Education, through carefully managed investments. We
believe, these three interwoven themes are the cornerstones
that will enable Africa to reach its full potential and overcome
the many challenges it faces today and in the future. Building
a strong foundation will help the next generation of aspiring
entrepreneurs and leaders to bring innovative solutions to the
continent and to the rest of the world.
This report aims to convey our impact approach. By providing
stories of a selection of entrepreneur’s ‘best-in-class’ careers,
future entrepreneurs can learn and realise what it takes to
create successful businesses (Chapter 3). The report also
makes a clear statement on how innovation can drive change,
and contribute to achieving the Sustainable Development
Goals by featuring companies with leading innovations in key
sectors and cutting-edge usages (Chapter 4). The report also
addresses how enhancing the education system provides
a solid stepping stone for future generations to become
successful leaders of tomorrow (Chapter 5). Additionally,
as part of our CSR strategy, by partnering with international
institutions such as Columbia Global Centre, Tunisian youth
can experience the best teaching practices, which will provide
them with the necessary skills that will enhance their chances
of employability, and encourage them to embark on local
innovation and entrepreneurship journeys throughout Africa
(Chapter 6).
At AfricInvest, impact is an intrinsic part of investment decisions.
With reference to the SDGs framework, this report aims to
provide evidence that investing in SMEs can significantly
improve these goals of local innovation, entrepreneurship and
quality education.
By Abir Attia, Responsible Investing Manager
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6
Impact Report
Thoughts from
Keynote Speaker
2018
Aunnie Patton Power
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Imp act Report
Thoughts from
Aunnie Patton Power
Keynote speaker Investor Day 2018
I
nnovation might just be one of the most overused words
of our time. In our everyday lives, with the potential for self-
driving cars, see-through solar panels and lifelike robots
on the horizon, we are surrounded by constant talk of
innovation and “what’s next?”. Even within academe, there
are over 50 accepted definitions of innovation all with different
categorizations and segmentations.
The part of innovation that is often overlooked is the purpose.
If innovation is really about solving problems and realizing new
opportunities, what problems are we solving and for whom are
we realizing new opportunities?
Innovation that focuses on local social and environmental
challenges is innovation that seeks to solve problems that are
relevant to people’s livelihoods and their quality of life. This type
of innovation tries to make the world a more inclusive place and
is often most effective when affected by those that have the
most knowledge of the problems at hand. Often this means
individuals that have a first-hand understanding of the issues
within their community and are empowered to create innovative
solutions that address the local social, economic and political
dynamics that exist.
Nonetheless, the will to create local innovations is not enough.
As this is within an investor handbook, you may easily guess
that an enabling environment - including access to capital, is
needed to help these innovators succeed. But capital as we
have known it in the past, siloed into the traditional structures of
debt, equity and grants, may not be enough.
About Aunnie Over the past few decades, new business models have emerged
Aunnie is the founder of Intelligent Impact, around social and environmental impact. These are companies
a technology for social impact advisory and entrepreneurs that have blurred the line between non-profit
and for profit. They have successfully changed the view of the
firm, and a university lecturer on Innovative Base of the Pyramid (BOP) from beneficiaries to consumers and
Finance, Impact Investing and Technology producers. The problem is these business models have evolved
faster than our funding approaches. So, in essence, we are
for Impact at the University of Oxford’s Saïd
constraining this 21st-century approach to social change with
Business School and University of Cape a 20th-century funding mindset. This is incredibly limiting. We
Town’s Graduate School of Business. don’t expect the fast-growing companies of the 21st century
to use the same models of delivery as their predecessors. For
example, Amazon doesn’t have to build stores to be the largest
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Impact Report
bookseller in the world. Similarly, we can’t expect the traditional technology will be important in overcoming these barriers as
structures of debt, equity and grants to work effectively unless algorithmic based lending platforms, crowdsourced and AI-
they are re-designed to address the needs of these innovative powered due diligence and other innovations help funders
business models and the social and environmental outcomes identify and distribute capital in a risk-adjusted manner to a
they are working towards. wider set of organizations at a lower cost. The combination
of blended capital and these technological advances will be
In my work, I have identified four key issues with how the
particularly important.
current financial models need to be adjusted to meet the needs
of the impact marketplace. I categorize these issues as Impact Life Cycle Support
Measurement, Mismatch, Distribution and Innovation Life Cycle Now the idea beyond local innovation is not necessarily that
Needs. it stays local. The goal is to scale up effective approaches
Impact Measurement to social and environmental issues. There are many different
ways to scale that can include contextualization by local
One of the reasons that traditional financing structures need to be
communities, including social franchising, company in a box,
adjusted for impact is that they often treat impact measurement
digital distribution and many more. Life Cycle Support during
as either an add-on or a post project calculation. If we want
this scaling phase is one thing that is significantly missing from
to make decisions in funding around social, environmental and
most markets. By this, I mean working with organisations from
financial returns, we need similar amounts of data for each
the early stage grants through to late-stage investments and
type of return. This means that impact measurement and
providing the type of capital that they need at different stages
management needs to be a part of the strategy of the company
of their growth. In the investment world, only a few players are
as well as how capital is disbursed and how it is priced. Coming
well equipped to achieve this and they are mainly development
advances in technology, including the use of the blockchain to
funders. USAID’s Development Innovation Ventures program
capture impact metrics from Internet-of-things (IoT) enabled
is an excellent example of an Innovation Life Cycle Support
devices using artificially intelligent protocols, will completely
approach.
revolutionize the way we collect this type of data and its veracity.
As you can see, all of these issues around funding local
Mismatch
innovation can be addressed with innovative financing and
When funding local innovation, there is often a mismatch embracing of new technologies. It will be up to funders
in expectations between funders and fundees. What I have themselves to continue to act as innovators to build the types of
observed is that funders are generally focused on the gazelles returns they seek alongside social and environmental returns.
– the fast-growing, high impact, highly scalable organisations
run by entrepreneurs who can deliver a flawless powerpoint
presentation. However, much of the local capital need is for
oxen – the slow-growing companies often in less sexy industries
and run by entrepreneurs who understand their businesses, “ Innovation that focuses
but might not be able to clearly articulate it in “industry
speak”. Partnerships around developing pipeline, syndicating
on local social and
investments with local investors and seeking out companies environmental challenges
that are outside of the usual pitching circuit are ways to address
some of these issues. Blending different types of capital within
is innovation that seeks
funds, including grants and technical assistance, can also to solve problems that
facilitate that entry into new markets with more flexible capital.
are relevant to people’s
Distribution
livelihoods and their
Generally local innovation starts small. This creates significant
issues for funders as the cost and the risk of distributing capital quality of life.”
to small entrepreneurs does not fit into their mandate. Again,
9
Imp act Report
10Impact Report
About AfricInvest
11Imp act Report
About AfricInvest
F
ounded in 1994, AfricInvest is a leading equity, quasi
equity and private debt provider in Africa. Uniquely
positioned as one of the most experienced private
equity fund managers and private debt players on the
continent, AfricInvest counts over 70 investment professionals
located across 9 offices in Africa and Europe.
AfricInvest manages EUR 1.2 billion across 18 funds and is
supported by both local and international investors, including
leading development financial institutions and private investors.
AfricInvest is the co-founder of the African Venture Capital
Association (www.avca-africa.org), the Emerging Markets
Private Equity Association (www.empea.org), Euromed Capital
Forum (www. euromed-capital.com), and several local private
equity and private credit associations in North, West and East
Africa.
AfricInvest’s positioning and investment strategy since founding
has been dedicated to supporting the growth of SMEs and
the private sector across the African continent. Throughout
its years of operation, AfricInvest has dedicated its efforts to
achieving positive social, economic and environmental impact
while improving people’s lives and without compromising on
expected financial returns.
k e y n u m be r s
24+
Years of experience
152+
Investee companies
9
Offices1
1.2 bn EUR
Total raised funds
1 - 7 across Africa and 2 in Europe
12Impact Report
London, UK
1 Tudor Street London EC4Y
Algiers, Algeria 0AH, England
Villa la falaise, 07 lot. Cadat, Phone: +44 20 34 63 49 22
Les sources Bir Mourad Raïs
Algiers, Algeria Paris, France
Phone : +213 770 33 36 83 16 Bis Avenue de la Motte
Piquet 75007, Paris.
Casablanca, Morocco Phone : +33 1 73 04 34 40
Résidence les Champs d’Anfa
D, Rue Bab Chellah, quartier
Cairo, Egypt
Racine, Casablanca, Morocco
The Greek Campus,
Phone : +212 522 363 736
171 Tahrir Street,
Bab El Louk, Cairo, Egypt,
Tunis, Tunisia
Phone: +20 127 793 1331
Immeuble Integra, Centre
Urbain Nord, 1082 Tunis,Tunisia
Phone : +216 71 189 800
Abidjan, Côte d’Ivoire
Plateau.18 Avenue Docteur
Crozet, Immeuble Azur, 5ème
étage Abidjan - Côte d’Ivoire
Phone : +225 20 31 00 80
Lagos, Nigeria
Victoria Court, 12 Owena
Street, Parkview Estate, Ikoyi,
Lagos, Nigeria
Phone : +234 1 74 06 535
Nairobi, Kenya
The Mirage Building, Tower
3, 8th Floor, along Chiromo
Road, Westlands. P.O Box 273
- 00202, Nairobi, Kenya
Phone : +254 0728 606 975
Johannesburg, South Africa
Opening soon
contact@africinvest.com
@Africinvest
AfricInvest_Grp
AfricInvest Group
13Imp act Report
14Impact Report
AfricInvest Stories
Supporting entrepreneurship
across Africa
15Imp act Report Supporting entrepreneurship accross Africa
Azalaï Hotels
Founded in 1993, by Mossadeck Bally, Azalaï
Hotels Group is the leading hotel chain in
West Africa. With its headquarters based
in Mali, Azalai Hotels has been growing in
the sector for more than 20 years and has
established a strong brand and presence
through ten hotels in six countries in West
Africa.
Description of the company
Azalaï Hotels Group first started with Mr. Bally’s acquisition of
the «Grand Hotel of Bamako» in 1993. The sponsor undertook
extensive renovations to offer international hotel standards to
customers visiting Mali. Thanks to the hotel’s success, Azalaï
Hotels began the construction of a second hotel, called the
«Hotel Salam,» in Bamako in 1997. In 2005, The Azalaï Hotels
Group acquired its first hotel outside Mali, the «Independence
Hotel» of Ouagadougou in Burkina Faso. In 2016, the group
opened a hotel training school in Mali. The group also has
four hotels under construction in Dakar, Conakry, Niamey and
Douala.
Azalai Hotel Group generates more than 4,000 direct and
indirect jobs throughout the sub-region. Over years of
development, the group has built a strong indigenous local
Name Company Name brand, in an industry dominated by international hotel chains.
Azalaï Hotels Land’Or It succeeded in developing a strategy focused on satisfying the
Location growing needs of its customers by constantly improving the
quality of its high-end service, through meticulous renovation
Bamako, Mali Sector of its hotel units and rigorous management of its fast-growing
SectorFood manufacturing portfolio.
Hospitality
Country
Investment Year Tunisia Investment rationale
2016 Azalaï Hotels Group’s vision, to become the leading African
Investment
Operation type year hotel chain, is aligned with AfricInvest’s values to promote
local know-how and to build strong local and regional players
Growth capital 2018
throughout Africa. Prior to investment, AfricInvest was
Operation
Status type attracted to the pan-African hotel chain’s ambitious strategy
Current Growth capital of expanding its operations across the West African region and
becoming a leader in the African hospitality industry.
Status AfricInvest was particularly interested in Azalaï Hotel Group’s
Current strong values, such as rigour and focus on quality. Both of
these values have enabled sustainable growth and stability,
16Supporting entrepreneurship accross Africa Impact Report
and have helped the group to build a significant track record
while maintaining trusted relationships with customers,
suppliers, employees and shareholders. Furthermore, Azalaï
Hotels Group’s commitment to building on its strong social
policy and to promoting good governance practices for
the hospitality sector is in line with AfricInvest’s goals for its
portfolio companies, and its own practices.
Since partnering with Azalaï Hotels Group in 2016, AfricInvest
has helped the company to enhance its environmental, social
and governance performance and has worked closely with
the management team towards bridging identified gaps with
reference to international standards. AfricInvest has also
assisted the group in reinforcing its team by identifying key
profiles with strong expertise at the front, middle and back
17Imp act Report Supporting entrepreneurship accross Africa
office levels as well as in identifying new business partners
About the Entrepreneur (such as construction management companies).
Azalaï Hotels Group’s sponsor, Mossadeck Bally, is a During the period since AfricInvest’s investment, Azalaï
pioneer in the African hotel industry. His entrepreneurial achieved significant growth and was able to expand to new
spirit, mission and track record are closely aligned geographies through the identification of existing facilities and
with AfricInvest’s mission to assist and encourage through setting up new units.
sustainable development throughout Africa.
Twenty-five years ago, many entrepreneurs were
The group now also has a CSR-focused approach which has
reluctant to invest in the hospitality sector in Africa.
been incorporated into the key decision-making procedures of
Today, Mr. Bally manages a chain of ten landmark
the business. This aims to formalize actions planned to control
properties in six different countries, with an ambitious
the impact of the group’s activities to ensure its sustainability
expansion plan. The sponsor has succeeded in building
both economically, environmentally and socially.
a thriving group employing more than 900 people.
Coming from a merchant-family, Mr. Bally joined the
family business after completing his higher education
in France and the US. His father was one of the most
respected agribusiness products traders in West Africa,
and taught his son entrepreneurial and business skills.
Mr. Bally is committed to contributing to Africa’s
economic development. This is proved by his decision
to return to Mail right after his graduation. Furthermore,
Mr. Bally has continued to develop and expand the
group in a challenging economic and political climate.
Mr. Bally is actively engaged in the hospitality sector,
creating a hospitality school in Bamako (Ecole Hoteliere
Chiaka Sidibe). A second one is due to open in
September 2019 in Burkina Faso.
Thanks to the perseverance of the Sponsor, Azalaï
Hotels Group is today one of the leading African hotel
chains.
18Supporting entrepreneurship accross Africa Impact Report
Key Impact Highlights
1100+
Total capacity - number of
beds in the region
900
Direct jobs created and sustained
3000
Indirect jobs
10
Landmark properties in 6
countries in West Africa
ISO 9001
Certified ISO 9001 version 2018
Location Sustainable development goals
Mauritania
Mali
Burkina Faso
Niger
Benin
Cote d’Ivoire
Cameroun
Guinea-Bissau
Guinee-Conakry
Senegal
19Imp act Report Supporting entrepreneurship accross Africa
Carbon Holdings
Founded in 2008 by Basil El-Baz, one of
Egypt’s most acclaimed entrepreneurs,
Carbon Holdings is a privately-owned
developer and operator of petrochemical
projects, located in the Suez Industrial
Zone of Egypt. Carbon Holdings is the
sponsor of three main projects, two of
which are operational and the third is in
the final stages of development: Oriental
Petrochemicals Company (OPC), Egypt
Hydrocarbon Corporation (EHC), and, Tahrir
Petrochemicals Corporation (TPC). Carbon
Holdings’ mission is to establish itself as
the largest integrated petrochemicals group
in Egypt. The company’s strategic central
location enables it to serve both global and
domestic demand. Carbon Holdings will take
a leading role in the development of Egypt’s
petrochemical market and be a stimulator for
local downstream manufacturing industries
creating tens of thousands of direct and
indirect jobs.
Name Description of the company
Carbon Holdings The projects developed by Carbon Holdings produce
fundamental petrochemical building blocks for a variety of
Sector
industries:
Petrochemical
In 2011, the company developed a greenfield low-density
Country ammonium nitrate (LDAN) project in Egypt called EHC. It is
Egypt the first project to close post-revolution. The plant has been
Investment Year successfully commissioned and is operational. EHC supplies
customers in the mining, quarrying and construction sectors
2018
globally. EHC is the only world scale ammonium nitrate project
Operation type in Africa with a capcity of 350,000 mtpa positioned to service
Growth capital the regional demand of 1.7 million mtpa.
Status In 2013, the company acquired OPC and embarked on a
Current strategic, technical, and commercial restructuring program.
Within two years of the acquisition, Carbon Holdings was able
to streamline operations and debottleneck the facility, which
has resulted in OPC reaching an annual production capacity of
225,000 mtpa, up from 120,000 mtpa. OPC is a polypropylene
(’PP’) project that produces a range of high quality PP grades
20Supporting entrepreneurship accross Africa Impact Report
which feed into the packaging, film, injection moulding, textiles,
carpets and, automotive industries.
TPC is the largest development of Carbon Holdings. The project
is in its final stages of financing and will produce a variety of
petrochemical products that are the essential building blocks for
the downstream manufacturing sector in Egypt, the continent of
Africa, and globally. Designed as an integrated petrochemical
complex, the project benefits from shared utility overheads,
efficient logistics costs, and reduced emissions, energy losses
and waste. TPC will have a significant impact on the Egyptian
economy and its surrounding community. It is expected to
generate in excess of 20,000 jobs during the construction phase
and once operational, the project will require 3,000 permanent
engineers and technicians creating approximately 200,000
direct and indirect jobs.
TPC’s spectrum of products feed into a variety of manufacturing
industries. This, coupled with the surrounding infrastructure
contributed by the project, creates a supportive environment for
SMEs. The project will replace over US$ 300 million of polymer
imports with over US$ 3.5 billion of polymer exports and
increase the country’s overall annual exports by more than 25%.
Carbon Holdings takes its responsibility to protect the
environment and minimise the impact of its operations on
local communities very seriously. All of its projects operate to
internationally-recognised environmental and social standards
and global sustainability measures. To work with Carbon
Holdings, suppliers must demonstrate that they work to the
same high environmental standards and must undergo regular
audits to ensure compliance.
Investment rationale
presence and establish a foothold to access the new emerging
While Egypt has an abundance of essential raw materials, it economies of continental Africa. Carbon Holdings’ partnership
is still a large net importer of petrochemical products. Carbon with major DFIs means that the company is committed to
Holdings’ mission is to reverse this and enhance the export strong ESG standards, which is of the utmost importance to
potential of Egypt. The company’s strong strategic-geographic AfricInvest’s values.
location being next to the Suez Canal justifies its ambitious
Carbon Holdings’ outstanding projections appealed to
mission. AfricInvest was drawn to the multitude of benefits
AfricInvest. The company’s management team has exceptional
that the location afforded, such as a reduction in freight costs,
industrial and regional expertise and a proven track record of
and more importantly, its ability to capture global demand with
successful organic growth. The company has also a strong
its access to large mature markets of Western Europe, North
potential to grow through export markets without having to
America and other high growth markets in Asia and the Middle
cross the Suez Canal. Additionally, Egypt is part of the COMESA
East. AfricInvest’s added value for Carbon Holdings’ lies in
trade agreement, European Union Association Agreement
its ability to help the company take advantage of its regional
and Greater Arab free trade Area, allowing Carbon Holdings’
21Imp act Report Supporting entrepreneurship accross Africa
Italian-Egypt, UAE-Egypt and Korea-Egypt Business
councils.
El-Baz successfully developed Egypt Basic Industries
Corporation (EBIC) in 2009. EBIC operated in Egypt and
became the 6th largest ammonia facility globally. El-Baz
led both the technical and commercial development
of EBIC. EBIC was one of a small group of projects
in Egypt to be financed entirely by a consortium of
International Banks. More recently, El-Baz spearheaded
a team that developed EHC, Egypt’s first successful
industrial project to close in post-revolution Egypt. To
showcase the success of EHC, the project received the
Euromoney Project Finance award for the deal of the
year in 2010. El-Baz’s commitment to stimulate African
industry is closely aligned with AfricInvest’s core values
of promoting sustainable economic growth in Africa.
In 2014, El-Baz was invited to attend the US-Africa
About the Entrepreneur Leaders’ Summit hosted by President Barack Obama,
where Carbon Holdings was a representative of the
Basil El-Baz is an Egyptian industrialist, entrepreneur
private sector. He was also invited to participate in the
and businesses executive. He serves as Chairman and
panel “Energy/Electrifying Africa: A Dialogue with African
Chief Executive Officer for Carbon Holdings. El-Baz has
CEO’s” at the United States Capitol, “A Special Event for
demonstrated his world-class experience and success
the Africa Leadership Summit.”
in executing projects in complex macroeconomic and
geopolitical environments. He is a Harvard University To cement El-Baz’s ‘best-in-class’ track record, he
graduate, where he studied Economics & Government received the ‘Africa Entrepreneur of the Year Award’ in
with a focus on industrial economies. El-Baz has extensive 2017 following his nomination at the ‘Business Africa
credentials, developing industrial projects, boosting Entrepreneur Awards’ in December 2016. El-Baz is the
Egypt’s industrial growth while creating tens of thousands first Egyptian entrepreneur to receive such an honour.
of jobs for the Egyptian people. He has over 20 years of oil, The award follows his ranking (in 2017) as 1st in
gas and petrochemical industry experience and has been Choiseul’s Africa 100, which surveys and ranks African
appointed as a director on several boards and businesses business leaders.
councils. Most notably he is a Trustee on the US-Egypt,
products to enter most of these markets free of tariffs. AfricInvest introduced the company’s management to plastic
manufacturing companies in North Africa and found new
Since partnering with Carbon Holdings in January 2018,
potential partners in Sub-Saharan Africa. It is also playing an
AfricInvest identified several axes where it could offer its
important role in the fundraising exercise that Carbon Holdings
expertise and support the company’s mission to become a
is undertaking to finance the development phase of TPC, prior
world-leading petrochemical company. AfricInvest’s extensive
to its financial close.
insight into African markets is helping Carbon Holdings on
expanding its OPC and EHC businesses across Africa.
22Supporting entrepreneurship accross Africa Impact Report
Key Impact Highlights
+25%
increase in the country’s
overall annual exports
+3000
TPC project is expected to hire
+3000 engineers and technicians
+200 000
Estimate number of direct and
indirect jobs to be created by
TPC project
Location Sustainable development goals
Egypt
23Imp act Report Supporting entrepreneurship accross Africa
Credible Blooms
Founded in 2011 by Eliud Njenga, Credible
Blooms is a Kenyan floriculture company
producing roses and exporting to 24 countries
worldwide. The company received Fairtrade
certification in 2018. Eliud, the founder of
the company, has extensive experience in
the sector, with an impressive track record
spanning 28 years.
Description of the company
Credible Blooms is Eliud’s second successfully established
company and employs 550 people as of December 2017. The
company started its operations in 2012 which consisted of a
12 ha rose farm, leased for ten years, in the Ngong region
of Kenya. More recently, the sponsor, with the assistance
of AfricInvest, has expanded the production capacity by
completing the construction of a 13.5 ha farm in Rumuruti,
Kenya.
Credible Blooms has considerably evolved in the past five
years, increasing its offering from seven different varieties of
roses in 2012 to 50 varieties in 2018 (on both farms). The
company exports to more than 24 countries across Europe,
Asia and the Middle East. It is now expanding its export
markets to the USA and China.
Name
Credible Blooms
Investment Rationale
Sector
Agriculture AfricInvest’s decision to partner with Credible Blooms was
motivated by the following reasons:
Country
Credible Blooms operates with a high level of commitment,
Kenya
transparency and professionalism, confirming its strong
Investment Year foundational business model. It was a unique opportunity to
2015 partner with an agribusiness player with significant positive
impact on the local community.
Status
Current Additionally, the location of the farm offered ideal attributes for
the company’s business model as the growing and harvesting
seasons of Credible Blooms’ roses are perfectly matched to
peak demand in Europe (for instance, Christmas, New Year’s
Eve, Valentine’s day, Women’s day and Easter all happen
within the warm seasons where full capacity can be achieved
on the farms).
Furthermore, the company was able to build a significant
24Supporting entrepreneurship accross Africa Impact Report
portfolio of loyal and renowned customers. In fact, Credible efforts to improve resource efficiency and has trained staff
Blooms’ management team has developed a deep about the subject (such as in capturing rainwater during
understanding of the importance of building strong ties with intense rainfall periods).
clients, striving to achieve international standards, which
The SFC team has also supported the company in expanding
explains their high customer retention rate of 80%.
its markets to new geographies and in implementing a new
AfricInvest was also attracted to the sponsor’s track record and information management system.
managerial skills and was committed to support the company
Credible Blooms has also improved its corporate governance
to become a significant rose distributor to Europe.
structure and put in place enhanced monitoring procedures.
Since partnering with Credible Blooms in 2015, AfricInvest, The farm is now equipped with modern infrastructure which
operating as a debt financer (SFC Finance), identified several includes computerised irrigation systems, water reservoirs and
areas in which it could offer its expertise and value addition to cold rooms.
the project:
The company has sharpened its marketing techniques, setting
The SFC team assisted Credible Blooms in implementing Credible Blooms apart from its competitors. Traditional rose
an action plan to achieve Fair Trade certification, which was sales are not only based on the quality of flowers but also on
awarded in early October 2018. This achievement was the packaging, decoration and customisation. Credible Blooms
result of several efforts geared towards implementing best offers its customers the possibility of choosing the length,
standards, installing decent working conditions and promoting labelling, sleeving and tagging of the flowers, which is highly
gender equality in the firm. The sponsor has also made great appreciated by prestigious clients in Europe.
25Imp act Report Supporting entrepreneurship accross Africa
About the Entrepreneur (without having to sell in Dutch auctions), Eliud founded
a rose trading company, Pigeon Blooms. He was able
Eliud Njenga has an exceptional entrepreneurial story to quickly establish a secure network of loyal customers
which clearly motivated AfricInvest’s investment decision. who expressed interest in dealing directly with a grower.
With the intention to reduce his strong dependence
Eliud had over 20 years of experience in the floriculture
on rose producers, Eliud started Credible Blooms by
business prior to the creation of his two companies: Pigeon
leasing a plot of land in Ngong.
Blooms and Credible Blooms. Eliud holds a diploma in
sales and marketing from the Nairobi Institute of Business In 2014, the company reached a point where it could
Studies and a certificate from the Enterprise development not meet the increasing demand from his customers
program at Strathmore university (a one year course that in Europe. This motivated Eliud to expand his activities
sharpens corporate governance skills). and seek financial support. By way of securing funding
from AfricInvest, Eliud acquired the land in Rumuruti with
In his early floriculture career, Eliud started as a pack-
direct access to a water source. He successfully planted
house manager. Being recognised for his unique sales
13 ha producing a total of 24 varieties of roses, which are
and marketing skills, Eliud quickly moved to the trading
now being exported to 15 countries. The farm has now
department, where he began to craft his skills that
reached full production capacity and quickly achieved
have been a contributing factor to the success of his
break-even and is generating strong cash flows.
two companies. Acknowledging the potential to take
advantage of the high margins of rose sales in Kenya
26Supporting entrepreneurship accross Africa Impact Report
Key Impact Highlights
24
Credible Blooms exports to more
than 24 countries worldwide
550
number of employees as of
December 2017
Fair Trade
Certified in 2018
50
Varieties of roses
Location Sustainable development goals
Kenya
27Imp act Report Supporting entrepreneurship accross Africa
Land’Or
Land’Or is the leading local brand in the
processed cheese manufacturing sector
in Tunisia. The company was listed on the
Tunisian stock market in 2013 and currently
exports to 12 countries. It operates through
one production site located in Khelidia,
Tunisia. Through its remarkable track record,
Land’Or developed a well-established brand
and offers a large variety of products which
has allowed it to gain trust and build strong
partnerships with internationally renowned
clients.
Description of the company
Founded in 1994 by two passionate veterinary doctors Dr.
Hatem Denguezli and Dr. Hichem Ayed, Land’Or is the leading
local brand in the processed cheese manufacturing sector in
Tunisia with a 31% market share.
The company produces «high quality and affordable» cheese
and analogue cheese (in several packaging shapes including
triangles, squares, slices, grated, blocks, spreadable paste…)
targeting FMCG consumers, food service companies as well
as the HoReCa (Hotels, Restaurants, Café) industry.
Name Thanks to its modern high standards factory with an installed
Land’Or capacity of over 20 thousand tons, a team of more than
Location 500 employees, its experienced management and its focus
on international certifications (HACCP, ISO 9001 and FSCC
Tunisia
22000), the company has been able to establish partnerships
Sector with international groups and build a solid brand.
Food manufacturing In 2017, the company obtained the Halal certification in order
Investment Year to target Middle Eastern and Asian markets. Additionally, it
2018 is the only company in North Africa to obtain the European
Accreditation for Health and Safety (Agrément Sanitaire
Type of transaction Européen).
Growth Capital
The company has also invested considerably in adopting a top
Status notch IT system aiming to enhance control and management
Current as well as improve monitoring.
As of September 2018, the company’s exports represented
37% of the turnover, destined for12 countries.
28Supporting entrepreneurship accross Africa Impact Report
Investment rationale
Land’Or is an established brand with a strong presence in
the market and a solid history. The highly skilled and dynamic
management team has a proven track record and a good
knowledge of the business, the products, the processes
and the regional market. Land’Or also has a well-established
governance structure, good supply chain management and
an extensive distribution network. Furthermore, the processed
cheese market is predicted to grow significantly in the coming
years, which will enhance Land’Or’s positioning and allow the
company to continue its growth locally and in new regions.
By setting up a strategic committee and taking an active role
on the board of directors, AfricInvest is supporting Land’Or
in achieving its development strategy. Additionally, AfricInvest
aims to enhance the company’s new business opportunities,
such as expanding its product offering and acquiring as well as
setting up new affiliates.
AfricInvest identified key value addition axes for Land’Or:
From a governance perspective, by improving reporting
standards and encouraging the company to implement best
practices, AfricInvest is helping Land’Or ensure the flexibility
and responsiveness of the organization, as well as establishing
a culture of participative management and a smooth decision-
making process.
Beyond the current markets covered by the company, which
include Tunisia, the broader Maghreb Region, and other
Middle Eastern and Asian countries, AfricInvest is contributing
its expertise to help Land’Or further expand its geographic
outreach to new African markets.
Based on AfricInvest’s solid track record in the agribusiness
sector, the team will work closely with the management of
Land’Or to achieve its ambition in diversifying its product lines.
29Imp act Report Supporting entrepreneurship accross Africa
About the Entrepreneurs
The entrepreneurial skills and ambitions of the sponsors know-how and the best practices in the industry. This
of Land’Or were key attributes that attracted AfricInvest. enabled the company to officially launch its cheese
Mr. Hatem Denguezli and Mr. Hichem Ayed, the founders products in 1998 and further expand their offering
of Land’Or, have proven many times their resilience, between 2005 and 2010.
perseverance and strong ambition to make Land’Or the The story of Land’Or as well as its founders’ strong
brand that it is today. ambition to develop the company into a market leader,
In fact, Land’Or was initially established as a meat through adversity and challenges, gave AfricInvest the
processing company and the first company in North motivation to provide support and help them expand
Africa to obtain the European Accreditation for Health and increase their exposure to new markets, in order to
and safety (Agrément Sanitaire Européen), key attributes make the company compete globally.
that set up the company for business success in the Mr. Hatem Denguezli - Co-Founder, CEO & Chairman of
meat industry. Landor: Mr. Denguezli co-founded the company in 1994.
Nevertheless, in 1996, due to the mad cow disease He is doctor in veterinary medicine and is specialist in
outbreak and other constraints and hurdles facing animal surgery.
the meat industry, Land’Or discontinued its activities. Mr. Hichem Ayed - Co-Founder and Deputy CEO of
With their whole business model jeopardised, the two Landor: Prior to co-founding the company, Mr. Ayed
founders decided to shift their production and revamp worked with the French group Fleury Michon then with
their processes to focus on cheese manufacturing. Le Boeuf, before managing SICOV in Tunisia which
The entrepreneurship journey of Land’Or in the operates also in the meat industry. Mr. Ayed is a doctor
processed cheese manufacturing was initiated through in veterinary medicine and holds a PhD in canned food
intelligent partnerships with European cheese and food products.
manufacturers, which allowed Land’Or to acquire the
30Supporting entrepreneurship accross Africa Impact Report
Key Impact Highlights
1st
The first North African company to
obtain “Agrément Sanitaire Européen”
520
Employing 520 Staff as of
October 2018
12
Distributing to 12 export markets
37%
Exporting 37% of its turnover
31%
Leading local brand with 31%
market share
Location Sustainable development goals
Tunisia
31Imp act Report
32Impact Report
AfricInvest Stories
Supporting
Fostering local
entrepreneurship
innovation
accross Africa
33Imp act Report Fostering local innovations
Bridge Group
Established in 2006, Bridge Bank Cote
d’Ivoire (BBG CI), a subsidiary of Bridge
Group West Africa (BGWA), is a universal
bank offering a wide range of banking
services to its corporate and retail customers
with a focus on innovative banking solutions.
BBG CI has contributed to local innovation in
the banking sector through its unique digital
transformation and the launch of the first
mobile-enabled nano-loan and nano-deposit
product in the Ivorian market, called “MoMo
Kash”.
Description of the company
Established in 2006, BBG CI is an affiliate of Bridge Group
West Africa (a portfolio company of AfricInvest), targeting the
Ivoirian SME market, which is actively looking for innovative
solutions. In the last decade, the bank was able to adapt to the
different political, economic and social changes it has faced,
and has used these changes to optimize its performance and
grasp different market opportunities.
With 229 employees as of October 31st 2018, BBG CI is a
leading independent bank (vs. multinational, regional and pan-
Name African banking groups) which adheres to the best financial
Bridge Bank West Africa and governance practices. This translates into a rigorous risk
management policy, a quality portfolio and a wide range of
Sector services. Over the past ten years, the Bank has developed
Financial Services many solutions and services specifically tailored to address
the needs and challenges of the SMEs. As a result, Bridge
Country
Bank became the reference in the SME segment, operating
West Africa in a plethora of sectors including FMCG, Agribusiness, Real
Investment Year Estate as well as other high value addition sectors such as
2014 infrastructure and IT.
Type of transaction
Growth capital Investment rationale
A multitude of reasons drove AfricInvest’s decision to partner
Status
with Bridge Group West Africa (BGWA). Under this partnership,
Current Bridge Group WA and AfricInvest’s missions are closely aligned
and offer exciting opportunities to improve the economic
climate in West Africa. The finance and banking sector in the
region have shown significant growth potential, underpinned
by strong regulatory oversight and low banking penetration.
The authorities’ commitment to improving the overall corporate
34Fostering local innovations Impact Report
such as: leasing, insurance, brokerage, asset management
and microfinance. As a result, the group decided to engage
in two new sets of financial services namely Brokerage/Asset
Management and mobile-enabled Microfinance.
The group launched new subsidiaries in brokerage and asset
management in partnership with a technical partner: Tunisie
Valeurs (a sister company of the AfricInvest Group).
The group also launched a mobile-enabled microfinance
activity with a strong technological component called “MoMo
Kash”, in partnership with a technical partner introduced by
AfricInvest. This initiative combined the market knowledge
of Bridge Bank Cote d’Ivoire, the technical expertise of CBA
Group (the leading mobile enabled nano-loans provider in
Kenya) and the distribution channels of MTN Cote d’Ivoire (the
telecom company).
AfricInvest contributed to the Bank’s growth strategy by
governance standards of the industry have encouraged
supporting the development of new innovative financing tools
AfricInvest to continue to actively look for opportunities in the
for the SME sector in the region, not to mention AfricInvest’s
region. Additionally, AfricInvest was eager to work with Teyliom
role in strengthening the governance practices and overall
Group (the main shareholder of Bridge Group), as it had an
corporate structures of BGWA.
exceptional track record of successfully promoting businesses
and a rich understanding of both the Senegalese and Ivoirian
markets. Furthermore, BGWA’s mission to contribute to the
SME space in the region is in line with AfricInvest’s investment
strategy.
BGWA’s resilient growth through turbulent times was another
defining aspect for AfricInvest’s involvement. In fact, the group
was launched in a context of economic crisis and a highly
competitive market, dominated by a few well-established
international banks. However, this did not impede BGWA’s
ability to achieve sustainable growth. Additionally, AfricInvest
was attracted by BGWA’s main attributes, such as ‘best-in-
class’ public perception of high-quality customer service,
a reliable core group of customers, an experienced local
management team and innovative products adapted to SMEs.
AfricInvest supported the regional expansion strategy of the
group and provided the necessary funding. In fact, a portion
of AfricInvest’s financing was allocated to the acquisition of
32% of BNDE (Banque Nationale pour le Développement
Economique) in Senegal.
As part of AfricInvest’s value addition strategy, it encouraged the
group to conduct several studies in order to identify new growth
areas and investigate potential diversification options in areas
35Imp act Report Fostering local innovations
Contribution to Local innovation
Bridge Bank Cote d’Ivoire distinguishes itself from the rest access to people with low daily incomes by allowing them
of its competitors by continuously striving to innovate. to open a savings account on their mobile phone and
Having identified the opportunity to launch mobile to apply for loans. It also offers the same services to all
centric services, AfricInvest called on its vast network of income brackets. Access to financial services is essential
business partners and its expertise to foster discussions to sustainable economic development, as it provides
around innovation, which led to the creation of BGWA’s individuals with the ability to manage their money over time,
most innovative product: Momo Kash. AfricInvest used a to enhance their resilience to shocks and enables them to
pragmatic approach and introduced the most experienced reinvest in physical and human capital. Furthermore, Momo
provider of mobile centric savings and loans in Africa Kash also allows students over the age of 21 to source the
to BGWA: CBA Group. Momo Kash is a three-party much-needed financial help to meet educational needs. To
partnership between MTN CI, CBA Group and BBG-CI, date, Momo Kash has one million subscribers. AfricInvest
and is the first nano-loans and nano-savings mobile- is very excited about the development of Momo Kash and
centric service in Cote d’Ivoire. hopes to replicate this experience in other geographies,
in the belief that providing real-time financial access to all
Momo Kash offers an efficient way to reach the low-income income brackets will contribute to the overall development
unbanked population of Cote d’Ivoire. It provides financial of the region.
36Fostering local innovations Impact Report
Key Impact Highlights
1,000,000
subscribers to Momo Kash
service
€2M
nano-deposits collected - Momo
Kash service (More than 80% of the
deposits are for a value of less than
Euro 7.5 each)
€700k
net nano-loan portfolio - Momo Kash
service (average loan of Euro 11 each)
Location Sustainable development goals
Senegal
Côte d’Ivoire
37Imp act Report Fostering local innovations
Medianet
Founded in 1998, Medianet is a pioneer in
the web services sector in Tunisia. Medianet
distinguishes itself by its innovative offer
in terms of web marketing and digital
communication strategies, which have been
developed and distributed to its local and
international clients through the creation of
websites, portals and platforms.
Description of the company
In 2001, Mr. Iheb Beji, the founder of Medianet, initiated the
project with three other partners. Since then, the team has
grown to reach 97 people as of today.
Medianet is a 360° digital agency with a strong IT DNA. Its
main business focus is spread between four services: web
solutions, digital services, Display/InfoChannel and business
training. The company has developed a diverse offering
around the web and digital presence of its clients. It prides
itself on supporting its clients from start to finish covering the
whole value-chain of their web projects, from strategic and
organisational planning, to the development of maintenance
solutions. Medianet offers high value-added support services in
sales promotion, web marketing and content creation. Besides
these services, the company also develops training activities
Name
for its clients’ IT departments and marketing teams, as well as
Medianet a dynamic display solution called «Information Channel,» which
Location allows an individual to control a grid of monitors remotely.
Tunisia Lastly, Medianet is one of the rare digital companies that is
ISO 9001 certified, which shows the company’s ability to
Sector consistently provide products that meet customers’ needs, as
IT, web services well as applicable statutory and regulatory requirements.
Investment Year
2015 Investment Rationale
Type of transaction Medianet’s experienced management team and the strong
Growth capital market positioning of the firm are key attributes that attracted
AfricInvest. Additionally, Medianet’s corporate culture which is
Status characterized by good reputation, a prestigious client base and
Current low staff turnover, gave additional comfort to the investment
team.
When partnering with Medianet in 2015, AfricInvest identified
several areas in which it could offer its expertise and support
the company to achieve its growth potential.
38Fostering local innovations Impact Report
AfricInvest is assisting Medianet in diversifying its offering of services, from online booking to digital marketing and an
and positioning itself as a leading digital communication online banking solution, bringing a new experience to the
agency with a specific focus on IT solutions (digital strategy bank’s clients.
consulting, new social gaming services and video content
creation). It is also helping Medianet to consolidate its local
market positioning by implementing an R&D department called
«Medianet Labs,» with the objective to develop tools that are
used to create web solutions and digital services.
Medianet has also dedicated and installed a co-working
space as part of its premises in order to promote innovation
and knowledge sharing and put in place corporate training
programs focused on digital services and raising clients’
awareness towards Medianet’s new products, such as the
various possibilities offered by e-marketing.
Additionally, through its extensive network, AfricInvest is helping
Medianet achieve its ambition to expand to international
markets by assisting the company in the development of
export markets in the Maghreb and Sub-Saharan Africa.
Medianet has developed vertical solutions for specific sectors
such as a new e-tourism platform that covers a wide range
39Imp act Report Fostering local innovations
Contributing to Local Innovation Diversification and Acquisition Strategy
Online banking solution: Not only does Medianet provide conventional IT services
to its clients but it also offers more innovative solutions
In 2017, Medianet developed a fully online banking solution and nurtures technological start-ups. In fact, Medianet
that is already commercialized by one of the leading private has acquired multiple start-ups focused on digital and
banks in Tunisia. Medianet’s online banking solution is a online services to diversify their offering and promote local
crucial step in the digitalization of the banking system and entrepreneurship and innovation. This build-up strategy
has helped to improve financial inclusion. The solution is aims to incubate and accelerate talented teams, allowing
innovative compared to the rest of its peers as it offers synergies with the whole group and help to reach common
simplicity, security and trust to its clients and enables objectives. Thanks to this strategy, the group has launched
them to have access to the banking system and electronic the first integrated platform of digital marketing in Tunisia
payments more easily. Medianet’s work on this online and is developing an online and fully automated affiliation
solution allowed them to further increase their reputation platform that is due for launch in early 2019.
and stance as a leader in the Tunisian market. The
developed platform is easy to use and interactive, built on an By supporting Medianet’s growth plan, AfricInvest is
innovative exchange and interactive platform. Furthermore, committed to helping its portfolio companies deliver
it allows tele-advisers to meet the different expectations of innovative business strategies and contribute towards
the customer: making appointments, receiving advice and local innovation.
information, processing claims and other requests. The
platform has been developed in order to respond to the
market changes and facilitate international innovation.
40Fostering local innovations Impact Report
Key Impact Highlights
97
employees
2000+
projects
800+
clients
40%
of revenues generated
from exports
Certified
ISO 9001, ISO 27001,
ISO 26000
Location Sustainable development goals
Tunisia
41Imp act Report Fostering local innovations
RIM Pharma
Radio Isotope Méditerranée Pharma (RIM
Pharma) is specialized in the production
and marketing of pharmaceutical and
radiopharmaceuticals services and products.
The creation of RIM Pharma is an innovative
and pioneering initiative in Africa and in
the Arab world, with the aim of developing
solutions to the diagnosis and treatment of
cancer and other diseases.
Description of the company
RIM Pharma is owned by Mr. Houbachi, a pharmacist, who
is also the owner of Polymedic, a pharmaceutical company
founded in 1964 and specialized in the production and
marketing of a wide range of pharmaceutical products, own-
label generics and products. Polymedic also manufactures
drugs for renowned pharmaceutical companies (i.e., Bayer,
Leo Pharma, Fresenius Kabi, Sandoz).
Established in 2008, RIM Pharma develops and produces
markers (radiopharmaceuticals) used in PET-scan imaging
(Positron Emission Tomography). The company has
developed and produced Fludeoxyglucose (FDG) and
Choline. These products aim to precisely detect tumorous
cells at early stages in the whole body (using FDG) and in
Name
the prostate (using Choline), making the radiotherapy more
RIM PHARMA
efficient and acting as a catalyst to reduce otherwise harmful
Location side effects.
Morocco Globally, 32 million people died in 2016 due to cardiovascular
Sector disease, cancer, diabetes or chronic respiratory disease. By
exclusively focusing on these new types of markers and
Pharmaceutical
technology, the company intends to position itself as a
Investment Year regional leading laboratory specialized in the manufacturing
2016 and marketing of cutting-edge products (such as the FDG) as
well as innovative pharmaceutical drugs (i.e., biomedicines,
Type of transaction immunotherapy, cancer drugs, etc.)
Growth capital
RIM Pharma focuses on chronic diseases thanks to a
Status wide generics portfolio (cardiology, CNS, respiratory,
Current ophthalmology, hormones, oncology, rare diseases…) and
around the three fields of Molecular Nuclear Medicine:
SPECT (single photon emission computed tomography),
PET (Positron Emission Tomography) and Metabolic
Therapies (therapies geared towards removing harmful
substances from the body (toxins) and strengthening the
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