Co-investment partnership for private equity in Africa

On June 30th, Bpifrance and Mubadala announced a new Memorandum of Understanding focusing on the African continent and its private equity.

 

The MoU was announced during the 13th session of the UAE-France Strategic Dialogue. Signed between both French and Emirati sovereign wealth funds, it focuses on the African market to further support the “tremendous potential of Africa’s private sector”, as said Nicolas Dufourcq, CEO of Bpifrance.

 

Commitment of countries and institutions for the African continent

With an objective of €350 million deployed through funds and direct investments, this partnership will especially revolve around flourishing African startups, SMEs, and Midcaps.  Both Bpifrance and Mubadala will invest in private equity and venture capital funds of various scales: regional, multi-country level or even pan-African level. This support also includes the French public investment bank’s strong network and expertise on this subject. “We hope more of our international partners will join us on this exciting African journey”, said Nicolas Dufourcq.

Indeed, this MoU comes after the Summit on the Financing of African Economies held on May 18th, during which up to 45 countries and institutions, including France and UAE, have decided to work together to support the economic recovery of the continent after the Covid-19 crisis and to help African entrepreneurs and SMEs.

 

Long-time support for the African continent

This partnership is in line with Bpifrance commitment to supporting entrepreneurs, not only in France but also in Africa. The French public investment bank has been present in Africa for almost 20 years now through Averroès, which represents an impact on over 150 companies, from startups to Midcaps-sized, in 40 countries of the continent.

This MoU further proves Bpifrance commitment towards the African continent, partnering up with a trusted institution, Mubadala. “Over the years, we have developed a strong relationship with Bpifrance and have successfully invested or committed approximately €1.5 bn in more than 15 investments in France. We are excited to extend this partnership into Africa, a market which we believe has significant untapped potential, and to invest alongside them in high-growth companies”, explains Waleed Al Mokarrab Al Muhairi, Deputy Group CEO of Mubadala.

 

Find the whole Press Release here.