Over $ 26 Mln Boost for Private Equity Sector in Morocco & Tunisia

The private equity sector in Morocco and Tunisia has received a $ 26.1 million grant from the European Bank for Reconstruction & Development (EBRD) to support the development of the private equity market in two North African countries, rocked by the Arab Spring.
The financial assistance will also serve to rev up equity funding for small and medium-sized enterprises (SMEs) in these two Maghreb economies. It is the EBRD’s first investment injected in the Maghreb Private Equity Fund III which provides equity, quasi-equity and equity-linked debt financing to SMEs.
MPEF III is a private equity fund formed by Tuninvest-Africinvest and managed by Evolia Limited with a target size of $ 261 million, which will make equity and equity-related investments in SME in Tunisia, Morocco, Algeria, Libya and, Egypt. Target sectors are agribusiness, packaging, consumer products, distribution and retail, financial services, manufacturing, telecom, and transport.
Funding projects in these sectors will have undoubtedly a positive social and economic development impact. This means more job creation, improving SMEs operational efficiency & competitiveness and enhancing transparency & corporate governance.
BERD is also expected to give Jordan $ 30 million to enable SMEs having access to capital to shore up growth, fund development projects and spur value creation. Moroccan retail bank “Société Générale Marocaine de Banques” will also benefit from a $ 26 million credit line to be provided by the European financial institution for the development of SMEs activities.