FMO, Tuninvest-Africinvest Group sign MoU to support African SMEs

Microfinance Focus, July 8, 2010: The Netherlands Development Finance Company (FMO) and the Tuninvest-AfricInvest Group (TunInvest-AfricInvest) have yesterday signed a Memorandum of understanding (MoU) to extend and intensify their partnership. The goal of this non-exclusive strategic partnership is to further contribute to the development of the private sector and mainly the SME segment in Africa by improving the institutions’ integration and information sharing. Both FMO and TunInvest-AfricInvest strongly believe that the investment opportunities in Africa are solid and growing, and therefore wish to further strengthen their relationship to reach their common objective of contributing to sustainable growth in Africa.

FMO and TunInvest-AfricInvest have a long-standing relationship since TunInvest-AfricInvest’s inception in 1994. FMO is already a shareholder in the fund manager, and FMO has been a repeat investor in funds managed by TunInvest-AfricInvest since the beginning. TunInvest-AfricInvest has become one of the key private equity players targeting SMEs in Africa and FMO and TunInvest-AfricInvest have co-founded the African Venture Capital Association (AVCA) which has contributed to raising the visibility and the standards of the industry in the continent.

With this MoU, FMO and TunInvest-AfricInvest confirm their partnership and commit to further deepen the relationship. Both parties intend to continue to share investment opportunities, know-how, and their respective networks. Both parties have expressed a commitment to jointly make efforts to enhance standards in the industry and create new market segments and opportunities.

With this MoU, FMO has expressed the intention to participate in future funds as anchor investor, provided that the respective funds fit its strategy and criteria. It is envisaged that FMO’s name as a long-standing and sustainable partner and anchor investor will facilitate attracting other DFIs and commercial investors to the new TunInvest-AfricInvest funds. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of € 4.6 billion, FMO is one of the largest bilateral private sector development banks worldwide.

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