The I&P Développement
OUR CONTRIBUTION TO THE MILLENIUM
DEVELOPMENT GOALS FOR 2015, AND BEYOND!
MDG 1 Eradicating extreme poverty and hunger thanks to:
• child nutrition distribution (Nutrizaza in Madagascar),
• food aid transport (Cat Logistics in Niger).
MDGs 4,5,6 Reducing child mortality rates, Improving maternal health,
Combating HIV/AIDS, malaria, and other diseases by supporting medicine diffusion through:
• generic drug production and distribution (CAMED in Mali, Genemark in Cameroon,
Duopharm in Senegal, Saphar in Niger),
• and by improving access to ophthalmology care (Vue Vision in Ivory Coast, Colaser in Senegal).
MDG 7 Ensuring environmental sustainability through:
• renewable energy sources (CDS in Mauritania),
• and promoting sustainable farming (Laiterie du Berger, Biotropical, Phileol).
MDG 8 Developing a global partnership for development by supporting the transfer of local
skills and the emergence of a highly qualified youth through professional training (Trainis in Mali).
Saint Louis Finance, Senegal Trainis, Mali
—— IP Développement (IPDEV) is a 10-year-
old social private company dedicated to promote
responsible entrepreneurs in Sub-Saharan Africa.
—— IPDEV has invested EUR 11 million in
34 growing African small and medium size
enterprises (SMEs) and microfinance institutions
(MFIs) as a minority shareholder.
—— IPDEV is part of Investisseurs Partenaires
(IP), an impact investment family managed by
Jean-Michel SEVERINO, former CEO of Agence
Française de Développement and former Vice-
President of the World Bank. The team is based
in Paris and in 5 African countries: Senegal, Ivory
Coast, Ghana, Cameroon and Madagascar.
IPDEV is mainly hold by private investors; its
shareholders are major international corporations,
public development financial institutions, family
offices and individuals.
A new social project for Africa
—— IPDEV is raising an additional EUR 20 million
in equity to pursue its mission and expand its reach
with a comprehensive twin strategy:
• Invest directly in 15 companies with high impact/
innovation content, over the next decade.
• Launch and support at least 10 local investment
funds in Africa to reach the smallest segment of
formal African businesses.
—— IPDEV is also raising EUR 7 million in grants
for a technical assistance fund, which will finance
start-up costs of the establishment of local funds
(feasibility studies, recruitment and training, etc.),
technical assistance to SMEs in portfolio, training
and community management for entrepreneurs
and research and impact monitoring.
Expected impacts 2013-2023
—— Over the ten coming years, the capital increase
will result in the development of 100 companies
including one third of start-ups and the direct
creation of nearly 3 000 sustainable jobs.
It will also produce a leverage effect of x18 of the
equity invested in IPDEV on the funds raised by
beneficiary SMEs, ie a powerful knock-on effect
towards the African industrial and economic fabric.
—— Extra financial impacts are about supporting
the emergence of responsible businesses in the
operating countries through improving:
• The corporations’formalization and strengthening
• Working conditions and health coverage, imple-
menting the ILO decent jobs concept into reality,
• Living conditions through the support of organi-
zations directly providing essential services (finan-
cial services, health, water, sanitation, etc.),
• Energy efficiency and stimulating the use of
alternative energies, waste management, resources
use and biodiversity footprint.
—— Financial returns will ensure the preservation
of the capital invested and reach a 3% Return on
Equity in the long run for shareholders.
David Munnich, IP
Roger Njitchoua, Cameroun Breuvages
Biotropical, Cameroon Cofipêche, Ivory Coast
3 Technical assistance
Organization, Training, HR,
mentoring and governance,
and marketing, …
Who are we?
An impact investor dedicated to African
A good financial track record
Combined with powerful social impacts
—— Investisseurs Partenaires (IP) promotes
responsible entrepreneurship in Africa by pro-
viding finance and strategic guidance to Afri-
can entrepreneurs, in a long term trust-based
relationship. IP relies on a proven intervention
model, “The Partnership wheel” that combines a
financial investment with an active participation
in the company’s governance and a close strategic
support of the management as well as technical
—— Based on a successful track record, IP has
raised the EUR 52.4 million fund IP Afrique
Entrepreneurs (IPAE). The fund will be invested
in 50 SMEs and MFIs as a minority shareholder for
amounts ranging from EUR 300 000 to 1.5 million.
—— IPDEV’s track record demonstrates that inves-
ting in African SMEs generates both a remar-
kable impact and financial viability. IPDEV has
completed 8 exits with an average gross equity IRR
of 16.5% and the portfolio has preserved the value
of the capital invested. Since 2002 IPDEV has in-
vested in 34 companies among which 16 start-ups
with measured impacts:
• 1 400 jobs created and preserved
• 32 000 individuals with access to financial
services and 10 000 people with access to water and
• 1 500 000 euros of additional taxes annually
contributing to government budgets and allowing
300 more children in school every year.
• A considerable traction on value creation
in the local economic fabric through suppliers
and service-providers: for example, the castor oil
producing company Philéol in Madagascar sources
beans from 6 000 producers.
FOCUS ON 3 SUCCESS STORIES OF THE CURRENT PORTFOLIO
IP co-founded a private laboratory specialized in geotechnical and environmental
studies in Niger, now leader and standard-setter in the country:
50 engineer jobs created, transfer of technology and building of local capacities.
LAITERIE DU BERGER (Senegal):
IP co-founded the only dairy company in Senegal sourcing fresh local milk:
135 jobs created, supply from 800 livestock farmers from the rural North and
distribution to low-income customers in 6 000 sales-points.
IP invested in a generic drugs manufacturer and distributor in Cameroon:
production capacity tripled, development of products range and financial
sustainability achieved. After eight years of operation, Genemark offers twenty
references to a lower price by 30% to 50% drug license.
What do we do?
Reach out to the “missing middle” in Africa
— Despite the promising
opportunities generated by
the resurgence of growth in
Sub-Saharan Africa, a large
share of the African small
and medium size companies
remains neglected by the
— They are very costly
to reach and face
overwhelming barriers in
raising funds, even though
they hold considerable
economic and social
— They represent what is
called the “Missing Middle”
of development finance.
A twin strategy:
— Direct investments each
year in 1 to 2 companies and
with very strong social
environmental impact and
— An ambitious capacity-
building initiative: the
launch of 10 country-
specific equity investment
vehicles with local
management teams and
lower management costs,
able to reach companies
with investment needs
between EUR 30 000 and
300 000. IPDEV will set up,
co-finance and support these
local funds which will each
invest in an average of
35 small businesses over
a 10-year period.
— This new strategic plan
maximizes impact by
ensuring that IPDEV
provides finance to a very
large spectrum of economic
— micro-enterprises through
investment in MFIs,
— small businesses through
local investment vehicles,
— and medium-sized social
businesses through direct
is unique in Africa.
Our solution Our objective
Who are our supports?
A strong shareholders’ basis
A dedicated team
of high level professionals
IPDEV’s is currently funded and supported by a
strong basis of 21 shareholders, among which:
• Essilor, a major international corporation with a
strong CSR approach,that will continue supporting
• 13 family offices and individuals, who will
continue providing support to IPDEV;
• EIB and Proparco, which will progressively divest
in the coming years, as agreed when they joined
IPDEV in 2006 and reflected in the corporation’s
—— IP Développement (IPDEV)’s board is chai-
red by Olivier Lafourcade while the corporation is
managed by Jean-Michel Severino.
A dedicated team of investment professionals is
committed to the implementation of the new
strategic project led by David Munnich, IPDEV’s
Investment manager, while the rest of the team
continues to manage the current IPDEV portfolio.
Olivier LAFOURCADE joined the World Bank in
1973 and held a large variety of operational and very
senior managerial positions for 30 years, in Latin
America and Africa. His last position at the Bank
was Director for Colombia, Mexico and Venezuela.
M. Lafourcade is now an international consultant
specialized on economic development issues.
David MUNNICH has been an Investment
Officer with IP since 2009. He is now in charge
of IPDEV’s investment operations. He graduated
from HEC Business School and worked two
years in Mauritania for the Agence Française de
Développement (AFD) before joining IP.
Jean-Michel SEVERINO began his career at the
French Ministry of Finance and Economy
before becoming an adviser of the Minister for
Development in 1988 and taking the Director’s seat
for the Ministry’s Development Programs in 1994.
He then joined the World Bank as Director for
Central Europe and then Vice President for
Asia (1996-2000). He was Director of the Agence
Française de Développement (AFD) from 2001 to
2010. In 2011 he joined Investisseurs Partenaires
(IP) as CEO.
Olivier Lafourcade Jean-Michel Severino David Munnich
WHAT ARE WE
In order to
implement its new
IPDEV is raising:
• EUR 20 million
• EUR 7 million
in grants for a
Investing in SMEs
is profitable but
IPDEV will bear the
costs of reaching
IPDEV plans to
preserve the value of
the capital invested
and reach a 3%
Return on Equity
in the long run.
of 7 years is
new investors, a
period after which
will be organized.
WHAT IS THE AGENDA?
IP - 10, rue de Sèze - 75009 Paris - France - Tél.: + 33 (0) 1 58 18 57 10 - Fax : + 33 (0) 1 58 18 57 19
PIONEER AND LEADER OF ORGANIC
TROPICAL FRUIT IN CAMEROON
and exports organic
tropical fruit in fresh,
frozen or dried form
to France and other
is certified by Ecocert
and is the leader in
Jean-Pierre Imélé, an agronomist with a 25-year working experience in the organic
sector, created Biotropical in 1999 with the objective to structure the organic value
chain in Cameroon. He approached IP in 2007 to raise the resources necessary
for the industrialization of the company.
IP invested EUR 145 000 in 2007 to expand the plantations and increase the processing
capacity. Beyond the financial investment, IP supported Biotropical for 5 years
by bringing technical assistance in financial management, strategy and marketing.
IP also granted loans to the company to mitigate cash shortages and to invest
in production capacity.
• Revenue growth of 130% between 2007 and 2011 and profitability exceeding 5%
• 100 jobs created between 2007 and 2011, 30% of which are held by women.
• 80 local producers trained by Biotropical have considerably raised and stabilized
their income by selling to Biotropical. Training expenses to the producers represent
EUR 45 000 in 2011.
• Organic agriculture: preservation of soils and water supply and improvement
of the working conditions of small producers.
• Organization of the organic industry in Cameroon, substitution of conventional input
by organic inputs.
IPDEV’S INTERMEDIATION STRATEGY
IPDEV’s intermediation strategy will leverage IP’s experience in
financing the missing middle to reach more SMEs and generate more
developmental impact. IPDEV will create national SME investment
vehicles and raise local and international funds to invest in SMEs
with needs in the EUR 30 000 - 300 000 range.
A successful experience in Niger with SINERGI
IP has already co-founded and supported a prototype in Niger: the investment
company SINERGI, created in 2006 with a shareholding of private companies and
businessmen established in Niger and an equity of EUR 760 000. SINERGI has analyzed
30 investment opportunities and invested in 10 SMEs an average amount of EUR 45 000:
• UNIFAM, a producer of metallic goods.
• Servicing, a reprography business.
• ETC, a cereal processing SME.
• Compost Niger, a producer and distributor of organic fertilizer.
• Sahel-lab, a mineral sample analysis laboratory.
The SMEs in portfolio have experienced rapid growth in revenue and prove to be much
more dynamic than the norm in Niger. SINERGI’s team is led by M. Djibo Ibrahima and
has been recruited and trained by IP. Drawing on IP’s methodology, SINERGI gets
actively involved in the governance of its investees and supports their management.
This successful experience in the difficult context of Niger shows the extent of the need
for such a vehicle as well as its economic viability. IPDEV’s new strategy will learn from
SINERGI: for example, the diverse shareholding structure with heavy involvement from
local businessmen and companies will be replicated. IPDEV will also raise larger funds
and invest more in training the teams to enable the vehicles to reach self-sufficiency
Ongoing projects in Burkina Faso and Ivory Coast
IP is now launching 2 similar equity vehicles in Burkina Faso and Ivory Coast.
The first project was initiated in Burkina Faso in 2012 thanks to a grant from
the Argidius Foundation. The SME sector in Burkina Faso is extensive and faces
great obstacles in raising long-term funds.
IP is raising EUR 3 million for the vehicle and planning to invest in 50 SMEs over
10 years in the country, with a vehicle launched and the first investments disbursed
in the first quarter of 2014. Expected impact over a 10-year period:
• 500 jobs directly created and 4000 preserved; EUR 4 million in wages distributed.
• 50 SMEs invested including 15 start ups co-founded.
• EUR 2 million in taxes paid to the State.
• Substitution to importations and EUR 6 million of exports.
• Knock-on effect on the local economic fabric with EUR 7 million of local sourcing;
indirect job creation, strengthening of the agricultural value chain.
IP is also working on securing start-up funds for a second project in Ivory Coast,
where the preliminary work has shown enormous potential.