MICROCAPITAL BRIEF: Teranga Capital Launches Fund for Small Growing Business in Senegal

Investisseurs & Partenaires (I&P), a France-based family of investment funds that supports “socially responsible” entrepreneurs in Sub-Saharan Africa, recently announced the inauguration of its third fund, Teranga Capital (TC). TC is a Senegal-based private-equity fund that will focus on “small growing businesses” with financing needs between EUR 75,000 (USD 85,000) and EUR 300,000 (USD 341.000). The fund’s starting capital is EUR 5 million (USD 5.7 million). In addition to the capital, TC will provide coaching with regard to sales and marketing, accounting, and other areas.

Olivier Furdelle, the founder and director of TC, said: “We bring [a …] solution specifically designed to answer the needs of Senegalese SMEs [small and medium enterprises], in terms of financing but also in terms of strategic and managerial support.”

Jean-Michel Severino, the President of I&P, said: “With Teranga, the I&P offers a smaller and complementary investment range, that perfectly matches the financing needs of small businesses. This […] model, which will span across 10 African countries over the next decade, aims to support an emerging network of dynamic and local enterprises in sub-Saharan Africa”.

I&P has sponsored Teranga Capital as part of its I&P Développement 2 (IPDEV2) project, which seeks to incubate a network of 10 African investment funds that targets small businesses. As of October 2015, IPDEV2 closed EUR 9.5 million (USD 10.8 million) in both equity as well as grants. As of March 2016, TC’s fund totals EUR 5 million (USD 5.7 million).

By Kevin van den Brink, Research Associate

About Teranga Capital

Teranga Capital is a Senegal-based private-equity fund that was founded in March 2016. As of the same date, the fund’s total capital is EUR 5 million (USD 5.7 million). The fund focuses on financing small growing businesses with financing needs between EUR 75,000 and EUR 300,000. It is sponsored by Investisseurs & Partenaires, le Fonds Souverain d’Investissements Strategiques (FONSIS), la Sonatel, Askia Assurances and individual investors from Senegal.

About Investisseurs & Partenaires (I&P):

Investisseurs & Partenaires (I&P) was established in France in 2002 as a family of investment funds that supports “socially responsible” entrepreneurs in Sub-Saharan Africa. It is made up of four for-profit financial vehicles, I&P Developpement (IPDEV), I&P Développement 2 (IPDEV2), I&P Afrique et Entrepreneurs (IPAE), I&P Africa Infrastructure (IPAI), in addition it has partnerships with sector-specific actors. IPDEV1 started in 2002 and has been fully invested with a fund size of EUR 11 million (USD 12.5 million). IPDEV2 started in 2015 and has closed its first round of investment, totaling EUR 9.5 million (USD 10.8 million) in October 2015, the fund aims at closing a second round of funding, totaling EUR 10.5 million (USD 12 million) in 2016. IPAE started in 2012 and has a total fund size of EUR 54 million (USD 61.5 million). IPAI started in 2016 and has a target fund size of EUR 100-150 million (USD 113-170) and is expected to close its first round of investments in 2016, totaling an undisclosed amount. Finally, I&P set up partnerships with sector-specific actors, they aim at raising a total of EUR 54.5 (USD 62 million).

Sources and Additional Resources

[1] JeuneAfrique, News, “Senegal: Teranga Capital Officialise Son Lancement Avec 5 millions d’euros”

MicroCapital Universe Profile: Teranga Capital

MicroCapital Universe Profile: Investisseurs & Partenaires (I&P)

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