EBRD Commits US$80 Million to North Africa Fund III to Empower Mid-Cap Companies
The EBRD has committed up to US$80 million to North Africa Fund III, managed by RMBV, aiming to support mid-cap companies in Egypt, Morocco, and Tunisia. The fund plans to generate significant returns via equity investments across several sectors while also receiving technical assistance to implement a gender action plan.
The European Bank for Reconstruction and Development (EBRD) has announced its commitment of up to US$80 million to North Africa Fund III (NAF III), the inaugural fund launched by RMBV as an independent fund manager. This initiative aims to provide vital support to mid-cap companies in Egypt, Morocco, and Tunisia, facilitating long-term capital growth through equity investments in various sectors, particularly healthcare, education, financial services, and consumer staples. NAF III endeavors to attract a total of US$300 million to aid local businesses in maximizing their operational effectiveness and achieving significant financial returns for its investors.
In addition to its financial input, RMBV shall benefit from a technical cooperation package aimed at developing and implementing a gender action plan, thereby reinforcing the importance of inclusive business practices. Anne Fossemalle, EBRD Director for Private Equity Funds, emphasized the Bank’s commitment to fostering a dynamic private equity environment in North Africa: “We are proud to continue to support the RMBV team in raising its first fund as an independent player in the North African private equity market.”
Furthermore, Ahmed Badreldin, Managing Partner of RMBV, expressed gratitude for the EBRD’s support and noted the alignment between both organizations’ visions, aiming to promote sustainable economic development in the region by empowering mid-cap enterprises. RMBV seeks to target companies with strong growth potential and robust management, thereby creating significant impacts while delivering superior returns to investors.
The EBRD’s initiatives in North Africa are designed to stimulate economic growth and enhance the funding landscape for private enterprises. By focusing on mid-cap companies, the EBRD aims to leverage private equity as a tool for financial advancement in this region, thus addressing the specific challenges faced by such businesses in achieving scale and operational excellence. The establishment of NAF III marks a significant milestone for RMBV as it transitions into an independent fund management entity, indicating a strategic shift toward enhancing regional investment capabilities.
In conclusion, the EBRD’s commitment of US$80 million to NAF III is a strategic effort to uplift mid-cap companies in Egypt, Morocco, and Tunisia by fostering sustainable economic growth and private equity investment. Through targeted support and technical assistance, this collaboration aims to empower businesses while generating substantial returns for investors. Both the EBRD and RMBV are dedicated to championing inclusive growth and advancing the economic landscape of North Africa.
Original Source: www.ebrd.com
