Boosting Private Sector Participation in Egypt's Seawater Desalination Program.
The IFC made the announcement during its Vice President Sérgio Pimenta's two-day visit to Cairo, which concluded on Tuesday.
The IFC said the equity investment is meant to support the development of medium-sized companies in Africa, with a special focus on firms run or led by women.
The Mediterrania MC IV fund will invest at least 25 percent of its capital in businesses owned or led by women. In both the Middle East and Africa, only six percent of all private equity capital is allocated to women-led businesses.
Founded in 2013, Mediterrania Capital Partners is a private equity firm headquartered in Malta. It focused on growth investments in small and medium-sized enterprises (SMEs) and mid-cap companies in Africa.
The firm invests in consolidated and growing companies with an annual turnover of €20 million to €300 million and expansion strategies into North and Sub-Saharan African markets.
Mediterrania IV will provide essential growth capital to medium-sized enterprises working in healthcare, fast-moving consumer goods, financial services, and manufacturing, all sectors vital to the development of African economies.
“Thanks to the IFC’s trust in our investments, we are helping thousands of people in Africa to have a better life,” said Albert Alsina, founder and CEO of Mediterrania Capital Partners.
“The IFC’s partnership with Mediterrania is supporting the growth of dynamic medium-sized enterprises, important drivers of growth in economies across Africa. This fund will bring much-needed capital to young businesses, helping them create jobs, reach new markets, and provide goods and services across a number of sectors,” he added.
“The signing ceremony supports IFC efforts with Mediterrania to boost development in manufacturing, finance, and healthcare, not only in Egypt but also in North and Sub-Saharan Africa... Through this partnership, there is more potential to share knowledge and success stories in the continent to accelerate economic growth and poverty reduction as we work to create an enabling business environment in collaboration with the private sector,” Egypt’s Minister of International Cooperation Rania Al-Mashat stated.
Mediterrania takes a hands-on investment approach, with a local presence in Morocco, Egypt, and Côte d’Ivoire, providing its portfolio companies with financial, strategic, and operational support to help them become national or regional leaders. Mediterrania Capital’s portfolio companies employ more than 20,000 people.
The IFC will provide training and advisory support to help Mediterrania improve the gender diversity of its investment team and portfolio companies.
The new investment is IFC’s third commitment to funds managed by Mediterrania Capital. IFC had previously invested in Mediterrania II in 2013 and Mediterrania III in 2017.