The EBRD is investing up to US$80 million in North Africa Fund III (NAF III) to support mid-cap companies in Egypt, Morocco, and Tunisia. Managed by RMBV, the fund aims to raise up to US$300 million for equity investments in key sectors. Technical assistance for a gender action plan will also be provided. This initiative reinforces the EBRD’s commitment to sustainable economic growth in the region.
The European Bank for Reconstruction and Development (EBRD) is facilitating growth in mid-cap enterprises throughout Egypt, Morocco, and Tunisia by committing up to US$80 million to the newly established North Africa Fund III (NAF III), which is managed by RMBV. This fund is designed to spur long-term capital appreciation through investments in equity and related instruments targeting mid-cap companies across these regions.
Following the initial closing phase, NAF III plans to allocate up to US$300 million to bolster North African businesses, enhancing their operational capabilities and delivering positive financial outcomes for investors. While NAF III does not confine itself to specific sectors, the RMBV management team intends to focus on industries where it has demonstrated successful capital deployment. These include healthcare, education, financial services, and consumer goods, with an inclination towards businesses that can leverage the dynamic consumer landscape in North Africa.
In tandem with financial backing, the RMBV will also benefit from a technical cooperation initiative aimed at developing and executing a gender action plan, signifying a commitment to sustainable business practices. “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.” – Anne Fossemalle, EBRD Director for Private Equity Funds.
Ahmed Badreldin, Managing Partner of RMBV, expressed gratitude for the EBRD’s support, emphasizing a shared vision of promoting sustainable economic growth and empowering mid-cap companies. He articulated, “This partnership reflects our shared vision of fostering sustainable economic growth across the region by empowering mid-cap companies to achieve their full potential and contributing to their transformation into regional leaders.”
With an investment strategy focused on firms exhibiting potential for growth and resilient management, RMBV aims to drive significant advancements in the North African economy, aligning with the EBRD’s principles of enhancing competitive, inclusive, and well-governed businesses.
The EBRD, established in 1991, focuses on building a sustainable environment for investment and growth in the countries where it operates. The commitment to mid-cap enterprises stems from their significant role in job creation and economic resilience. By investing in North Africa through funds like NAF III, the EBRD aims to stimulate economic development, enhance access to capital, and improve governance among businesses in the region. The partnership with RMBV illustrates a broader strategy to strengthen private equity as a crucial funding mechanism while promoting socio-economic progress.
In summary, the EBRD’s cornerstone commitment of up to US$80 million to NAF III highlights its strategy to support mid-cap enterprises in Egypt, Morocco, and Tunisia. This initiative aims to generate financial returns while contributing to the sustainable development of the North African economy. Through strategic investments and technical assistance, the partnership seeks to empower regional businesses, aligning with the EBRD’s values of fostering resilient and inclusive economic growth.
Original Source: www.ebrd.com
