AN IMPACT INVESTMENT GROUP dedicated to African entrepreneurship. December 2013

Transcription

1 AN IMPACT INVESTMENT GROUP dedicated to African entrepreneurship December 2013

2 KEY FIGURES A 12 year old success story Creation in 2002 by Patrice Hoppenot, a Private Equity professional, co-founder of BC Partners Succeeded by Jean-Michel Severino in 2011, former Vice President of the World Bank ( ) and former CEO of l Agence Française de Développement ( ) 2 investment vehicles I&P Développement (IPDEV), historical vehicle, capitalized up to 11 million euros I&P Afrique Entrepreneurs (IPAE), investment fund of 50 million euros, launched in 2012 For minority stakes whose amounts range from 50 K to 1.5 million euros More than 40 partner companies Located in 11 African countries : Senegal, Mauritania, Mali, Niger, Ivory Coast, Benin, Burkina Faso, Cameroon, Uganda, Namibia, Madagascar Operating in diversified sectors : agro-industry, health, building, etc. Economic, social, environmental and governance impacts + 30% revenue in the companies portfolio in emplois maintained or created in 8 years over 30 companies 3 million taxes generated annually, allowing more public spendings, i.e. 600 more children in school every year DEC 2013 PAGE 2

3 WHO ARE WE? An impact investment group with a growing family of investment vehicles Created in 2002 by Patrice Hoppenot, a private equity professional and founder of BC Partners, Since 2011 I&P is headed by Jean-Michel Severino, former CEO of the French Development Agency and former VP for Asia at the World Bank. I&P s mission is to contribute to the development of a sustainable private sector in Africa in supporting a new generation of African Entrepreneurs. I&P is staffed by experienced professionals with strong social, environmental and governance values. Its team of 18 people is based in 6 offices located in Paris, Cameroon, Ivory Coast, Senegal, Ghana and Madagascar. DEC 2013 Page 3

4 HOW DO WE WORK? I&P aims at maximizing economic, social, environmental and governance impacts while ensuring the long-term profitability of its portfolio. To date, I&P has invested in more than 40 SMEs across Africa in a variety of sectors including agribusiness, health, services, industry and microfinance, and has promoted the creation of two African investment funds. I&P s portfolio consists of businesses in Senegal, Mauritania, Mali, Niger, Ivory Cost, Benin, Burkina Faso, Cameroon, Uganda, Namibia and Madagascar. I&P supports the financial needs of responsible African entrepreneurs I&P makes equity investments as a minority shareholder in African SMEs, focusing strongly on start ups, and through its investments also promotes environmental, social, and governance best practices. I&P provides considerable extra-financial value by supporting the SMEs throughout the investment period. DEC 2013 PAGE 4

5 OUR MODEL: THE PARTNERSHIP WHEEL I&P is an active partner who brings expertise in finance and management in an entrepreneurial approach. I&P wishes to establish with the entrepreneur a trusting relationship in the long run. Interventions are at three levels. 1. Finance Minority equity, loans, 2. Monitoring Strategic, Management, social and environnemental,. 3. Technical assistance Organisation, Training, HR, mentoring and governance, technical, commercial and marketing, DEC 2013 PAGE 5

6 WHY AFRICA? Africa has over the past decade an unprecedented improvement Based on structural phenomena, demographic and geographic, it is accompanied by an increase in exports, improved terms of trade, an increase in final consumption and significant transfers of migrants. Characterized by good macroeconomic indicators (inflation decreasing: from 15% in 2000 to 8.1% in 2011, more controlled foreign debt from 63% of PIB in 2000 to 22.2% in 2012). However, its growth is heterogeneous, fragile and insufficient 48 Sub-Saharan African countries do not face the same problems of development. Balance of commodity exports undiversified weakens by exposing them to the volatility of world economies. In 2011, the African IHD remains below 52% in the North American IHD, against 56% in Many companies driving development of the continent, still lack access to long-term financing. They form what is called the MISSING MIDDLE. DEC 2013 PAGE 6

7 WHAT IS THE MISSING MIDDLE? LARGE COMPANIES (INVEST.: >2M ) SMALL AND MIDDLE SIZE COMPANIES (INVEST.: 50K TO 2000K ) > LOCAL BANKS, INTERNATIONAL INVESTORS FINANCING GAP > I&P INVESTMENT TARGET Investing in SMEs is difficult considering: A Lack of reliable accounting A lack of management culture The high cost of monitoring and evaluation in comparison with the invested amounts A high cost for formalization MICRO-ENTREPRISES (INVEST.: 100 TO 50K ) > MICROFINANCE INSTITUTIONS DEC 2013 PAGE 7

8 OUR PHILOSOPHY Vision The development of profitable and responsible SMEs will contribute to a socially and environmentally sustainable growth in Africa. Mission Promote African entrepreneurs through a trust-based relationship on financial, strategic and operational levels in one hand, environmental, social and governance levels on the other hand. Set of values ENTREPRENEURSHIP SPIRIT INTEGRITY COMMITMENT TO DEVELOPMENT EXCELLENCE DEC 2013 PAGE 8

9 I&P s TWO INVESTMENT VEHICLES Investisseurs & Partenaires (I&P) I&P Développement (IPDEV, 2002) I&P Afrique Entrepreneurs (IPAE, 2012) VEHICLE SIZE TARGETS DEAL SIZE NUMBER OF INVESTMENTS FINANCIAL RETURNS ESG IMPACTS 11 million EUR Small size companies 30 KEUR < X< 300 K EUR million EUR Small and Medium size companies 300 K< X <1.5 M EUR 10 to date 30 in the next 4 years DEC 2013 PAGE 9

10 OUR GOALS: GENERATE IMPACTS AND MEASURE THEM ECONOMIC IMPACT ESG IMPACTS ADVOCACY Participation in the structuring of production chains and local distribution. Generate taxes through the activities of our partner companies and allow more public spending Increase funding opportunities many borrowers Play the role of financial catalyst E> Fight against climate change S> Move towards the concept of decent work G> Increase the formalism of portfolio Increase awareness on the reality of the African growth, the emergence of a new generation of entrepreneurs and opportunities offered by the Capital Investment in Africa DEC 2013 PAGE 10

11 A SEASONED FRANCO-AFRICAN TEAM CEO IPDEV CHAIRMAN JEAN-MICHEL SEVERINO OLIVIER LAFOURCADE Investment Team Investment Directors Investment Officers PIERRE CARPENTIER LARISSA MONTHE (Cameroon) MIALY RANAIVOSON (Madagascar) JÉRÉMY HAJDENBERG THOMAS LAURUOL (France) PATRICE GOMIS (Senegal) SÉBASTIEN BOYÉ (Ghana) BAAFOUR OTU -BOATENG (Ghana) SERGE TOURE (Ivory Coast) IPDEV dedicated Investment team to the new strategic project DAVID MUNNICH HUGUES VINCENT-GENOD Support Team Advisors LAETITIA LATREILLE (CFO) ELODIE NOCQUET (Financial and ESG Officer) PIERRICK BARATON (Research and impact assessment Officer) ALEXIS THIROUIN (Financial Management Officer) ISABELLE COLIN (HR and Administrative Officer) EMILIE DEBLED (Communications & PR Officer) BRUNO CAIRE ANNIE FERTON DOMINIQUE PERREAU JEAN-LOUIS DE MONTESQUIOU DEC 2013 PAGE 11

12 A SHAREHOLDING OF INDIVIDUALS, CORPORATE AND PUBLIC INVESTORS DEC 2013 PAGE 12

13 OUR INVESTMENT TARGET Small and Medium Enterprises (SMEs) --Small Growing Businesses (SGBs) --Micro Finance Institutions (MFIs) Managed by local teams or entrepreneurs Within the formal economy In various sectors (health, food, agriculture, construction, distribution, energy, services, microfinance institutions, etc.) Showing prospects for value creation and local social, environmental and governance DEC 2013 PAGE 13

14 A DIVERSIFIED AND BALANCED ENTERPRISE PORTFOLIO IPDEV IPAE HEALTH FINANCE/ MICROFINANCE TEXTILE BUILDING MATERIALS, EQUIPMENT SERVICES Duopharm, Colaser, Camed, Genemark, Saphar, Vue & Vision, Loop, Nutrizaza Saint Louis Finance, Fides Bank Namibia, Acep Burkina, Sinergi, ACEP Cameroun, ACEP Madagascar, Afrique Emergences Ken Atlantic Cofipêche, Equip Plus, CDS, Bhélix, Carotech Bénin, Carotech Mali Legeni, Trainis Nest for All Uganda Finance Trust, OXUS Network, ACEP Madagascar Rica Services, Delta Irrigation, SOFAMAC ITG Store DISTRIBUTION Nomad AGRO-INDUSTRY TRANSPORT Laiterie du Berger, Biotropical, Sagex, Philéol CAT Logistics IOT Bakou Logistics DEC 2013 PAGE 14

15 BIOTROPICAL AGRO INDUSTRY CAMEROON Entrepreneur: Jean-Pierre Imélé In portfolio since 2007 I&P Share: 25.8% Employees: 47 BIOTROPICAL produces, processes and exports organic tropical fruits (mangoes, bananas, pineapples ) in fresh, frozen or dried form to France and other EU countries. Biotropical is certified by ECOCERT. Jean-Pierre Imélé is an agronomist with 25 years experience in the organic agriculture sector. He founded Biotropical in 1999 with the aim of developing organic farming in Cameroon. I&P Partnership I&P invested EUR 145,000 in equity in 2007 to expand the plantations and increase processing capacity by setting up a plant. I&P also brought technical assistance and support on finance, management and marketing issues, as well as bridge loans and successive productive loans. Impacts Considerable job creation: 40 permanent jobs and 150 recurrent seasonal jobs created and preserved Revenue growth of nearly 130% between 2007 and 2011 Profitability exceeding 5% since smallholder farmers trained and supported by Biotropical which processes and exports their products (500 tons of fruits bought every year) Organization of the organic industry in Cameroon, substitution of conventional input by organic inputs PAGE 15

16 CAMED ACCESS TO HEALTH - MALI Entrepreneur: Malick SY In portfolio from 2003 to 2011: exited Employees: 25 CAMED is the market leader in the distribution of generic pharmaceutical drugs in Mali. It was created with the financial and management support of I&P. MCAMED s founder is Malick Sy who holds a Doctor in Pharmacy degree from the University of Bamako. I&P Partnership IPDEV invested 50,000 EUR in equity in 2003 to finance storage space and equipment. 2 successive loans followed for additional investments. I&P also brought considerable extra-financial value to CAMED and in particular: Strengthened management structures and business accounting Improved marketing processes Extended product portfolios Sourced bank loans to finance working capital needs. Impacts Creation of 25 formal jobs and of a national market leader Developed access to affordable generic drugs for the Malian population Exit IPDEV sold its shares in part to 50 retail pharmacists (customers of CAMED), and in part to a French supplier of pharmaceutical drugs, and realized an IRR of 22%. PAGE 16

17 CAMEROUN BREUVAGES WATER CAMEROON Entrepreneur: Roger Njitchoua In portfolio since 2006 I&P Share: 24,7% Employees: 50 Cameroun Breuvages produces and commercializes natural spring water and flavored in packs of 500 ml, through the Sawawa brand. The company is leader on the market of packed waters in Cameroon. Roger Njitchoua is a Doctor in hydrogeology, former researcher at CNRS and senior lecturer at Universite d Orsay. In parallel to his PhD, he gets to like business by working with his father who is a businessman. From 2002, he focuses in full time to the Cameroun Breuvages project. After a difficult start in 2004, sales have increased to reach a net and positive result in The company has thus established a new investment plan to pursue its growth. It has diversified its products and its way of functioning. I&P Partnership I&P is committed alongside Cameroun Breuvages to: Go along with the start-up at the start of its activities(development strategy, marketing and communication) To support its investment plan targeting to launch the new product <<Pamparam>> on the market. Impacts Annual turnover growth in average since 2006: + 22% CAMEROUN BREUVAGES products have allowed a better access to a qualitative water The company uses from now recyclable sachets. PAGE 17

18 CAROTECH MALI EQUIPMENT MALI Entrepreneurs : Malick SY and Aïcha SY In portfolio since : 2006 I&P Share : 31% Employees : 21 CAROTECH Mali is a production of tiles and pavers cement based in Bamako. The process can not use the oven in a country where power is very expensive. The CAROTECH Mali project is part of a growing market in Mali, powered by the very significant and rapid urban growth in the major cities of the country, especially in Bamako. Malick Sy, is a doctor of pharmacy and created CAMED, a leading pharmaceutical distributors including I&P has long been a shareholder. It is associated with I&P to create CAROTECH Mali, adopting the technology used by a Nigerian company. The company is headed since its inception by Aicha Sy, the wife of Malick. Aicha has a degree in management science and previously worked in the microfinance sector. Its rigorous management, his acute business sense and his natural authority allowed him to lead very successful development of the company I&P Partnership Beyond the financial investment, I&P is committed alongside CAROTECH Mali for Strengthen its structures through several technical assistance missions Provide the company with a strong management information system (GIS) Impacts 721 direct jobs were created between 2007 and 2011 Contribution to the development of local industry as a substitute for imported products often DEC 2013 PAGE 18

19 CDS RENEWABLE ENERGY MAURITANIA Entrepreneur : Sidi Khalifou In portfolio since 2011 I&P share: 30% Employees: 30 CDS is a social business bringing basic water and electricity services to deprived rural communities in Mauritania by installing and managing small offgrid systems in 12 small cities. CDS also distributes renewable energy products: solar kits, solar water pumps and heaters, solar refrigerators, and more. Sidi Khalifou is a Mauritanian engineer and entrepreneur trained in France. After creating the consulting firm Ecoqualité and the NGO Ecodev, he took over CDS in I&P Partnership I&P invested EUR 75,000 in 2011 to support CDS s development of off-grid networks and renewable product distribution in rural areas. I&P provides ongoing technical assistance to CDS through consultants and field visits. Impacts Turnover and profitability have doubled in qualified formal jobs were created or maintained. Transfer of technology is taking place. Access to water and electricity extended to rural households. DEC 2013 PAGE 19

20 DUOPHARM HEALTH SENEGAL Entrepreneur(s) : 12 pharmacists founders, including Jules Charles Kebe, CEO In portfolio since : 2011 I&P Share : 30% Employees: 29 Website : New player in the pharmaceutical market in Senegal, Duopharm was born from the merger of nearly 150 pharmacists Senegalese shareholders. In two years, it has established itself in the Senegal pharmaceutical landscape, thanks to its proximity marketing strategy. The business of DUOPHARM is characterized by high competitive intensity and a strong presence of multinational companies of European origin. However, this healthcare market is experiencing very strong growth in Senegal, where health spending per capita increased sharply since the early 2000s. Thus since 1999, the number of pharmacies has doubled since 1999 and the drug market has an annual growth of around 6%. Jules Charles Kebe, CEO, was medical representative for Pfizer and led the COPHASE second wholesaler-distributor of Senegal from 1999 to I&P Partnership I&P is committed alongside DUOPHARM: Deepening with developers, and with the support of a pharmacist who had a similar experience in Mali, the initial financial projections and action plan Providing funding to the company in its creation and contributing to successive capital increases Including participation in the financial strategy Impacts Emergence of a local player in the pharmaceutical distribution (both leaders are subsidiaries of French companies) DEC 2013 PAGE 20

21 LAITERIE DU BERGER AGRO INDUSTRY SENEGAL Entrepreneur: Bagoré-Xavier Bathily In portfolio since : 2006 I&P Share : 25,6% Co investors: Danone Communities, Grameen Credit Agricole and Phitrust Employees: 135 La Laiterie du Berger is the only Senegalese enterprise to manufacture dairy products from local fresh milk, collected from more than 800 farmers in the area of Richard Toll, in northern Senegal. La laiterie du Berger s product, distributed in more than 6,000 outlets in late 2012, facing stiff competition from products made from imported milk powder and dairy products from the informal economy. Bagoré-Xavier Bathily was born in Dakar and studied veterinary medicine in Belgium. He then worked in France and for an NGO in Mauritania. In 2005, with strong support from his brothers and sisters, he created La Laiterie du Berger for to enhance the production of fresh milk Senegal. I&P Partnership Investment at the inception of the company, allowing it to start Since the original contribution to strategic thinking Gradual introduction of management tools Contribution to the broadening of the shareholder base Technical assistance on various topics (operational and financial) Impacts 800 farmers and their families now have an outlet for their milk. The incomes of these farmers have tripled since the inception of the company and became regular Contribution to the structure of the dairy industry in Senegal Marketing of healthy products and in small doses, accessible to a popular clientele DEC 2013 PAGE 21

22 LEGENI OFFICE STUDIES NIGER Entrepreneur : Adamou Assane In portfolio from 2004 to 2012 Employees: 50 Website : Legeni is the first private laboratory of geotechnical and environmental studies in Niger. These studies (soil testing and materials, environmental impact studies), mandatory in theory, are essential to the professionalization of the construction sector of the country. Niger was available until 2006, only one public ill-equipped laboratory. Since its inception in 2004, LEGENI itself as the reference laboratory in the country thanks to the quality of its equipment and its benefits. The company has grown rapidly, driven primarily by mining investments in the north. After working for many years as head of maintenance in the Areva mining subsidiaries in the north, Adamou ASSANE joined the agency executing the work of the World Bank in Niger. It is through this experience that he perceived the lack of a geotechnical laboratory quality in Niger. He seized the opportunity by creating LEGENI in I&P Partnership I&P has occurred: As a founding shareholder of the enterprise after accompanying the entrepreneur in writing of its initial business plan By providing at LEGENI, a technical assistance to business start-up, through a training mission for a person with a long experience in the trade Repeatedly to finance additional investments to expand as and when the range of services offered to its customers Impacts 50 jobs created, much of skilled jobs Contribution to the professionalization of the Nigerian construction sector through analyzes before and during construction to ensure the quality of buildings and structure DEC 2013 PAGE 22

23 NUTRIZAZA AGRI BUSINESS MADAGASCAR Entrepreneurs: GRET and management team at Nutrizaza In portfolio since : 2012 I&P Share : 22% Nutrizaza is a social company which aims to develop a network of baby restaurants (hotelinjazakely). It also develops an activity of commercializing of baby food such as <<Koba Aina>>. It looks for making the product available to the maximum of families, mainly poor families while reaching financial profitability. <<Koba Aina>> is a qualitative food completing mother s milk. This infantile flour is produced and conditioned from Madagascan raw materials and on the basis of a formulation set up by a local agree-food company, a project partner: Taf Company. It s in accordance with most strict international standards both in nutritional and sanitary ways. It s sold through packs or ladleful of mash. The proposed product offers the best link between price and quality in the market. Impacts a wider availability to food adapted for baby will concretely mean the diminishing of child mortality through improvement of anthropometrical indicators (weigh and height in function of the age) the information dispensed by animators in Hotelin-jazakely will enable to improve mothers nutritional knowledge and so to fight against structural causes of food deficiency of young populations. These selling corners are a meeting and exchanging place to contribute to food practices more adapted to early childhood In addition of acting on determinants of endemic nutritional deficiency, the distribution growth of Koba Aina should generate on five first years the creation of 121 jobs and so favors the life conditions of populations At mid-term, the improvement of child and young nutrition will mean a growth of the schooling rate of an age range by reducing the risk of ill students. on a general extend the improvement of the child and young health is part of Millennium Objectives for Development and contributes to the improvement of populations living conditions through economic growth and demographic transition. PAGE 23

24 IOT AQUA CULTURE MADAGASCAR Entrepreneurs: Jaco Chan Kit Waye and Olivier Méraud In portfolio since : 2012 I&P Share : 30% Employees: 152 IOT is an industrial aquaculture company of sea cucumbers based in Madagascar. Cucumbers aquaculture is realized in basis of a technology of reproduction developed in Madagascar by a scientific team. Once sea cucumbers are produced, IOT puts them on international markets. Jaco Chan Kit Waye is CEO of Copefrito SA and president of the Association of Madagascar sea product exportation. Being an entrepreneur since a long time, he creates in 1995 Copefrito, an octopuses and calamari fishing company exporting towards Europe. Olivier Meraud works since 2004 with Copefrito where he practiced many operational jobs. He is a captain of merchant navy and works in fishing and the business of sea products since 12 years. In parallel with his job at Coprefito, he cofounded the company Madagascar Seafood (MSF) in 2005 and is today the president and one of the main shareholders. The company works with 4 transformation factories in Madagascar and exports its products (crab, octopus, calamari, lobster ) towards France and Italy. It realized a turnover about 6.5 million of Euros in Impacts Number of created and consolidated jobs: 152 jobs within 6 years, with 77 permanent ones and 11 in technical or managerial position. Precursor project about mass production of sea cucumbers in Madagascar, potentially replicable. Creation of an activity generating revenues for a community of fishermen and their villages; Sea cucumbers aquaculture is positive for the environment: no use of antibiotic, chemical products, no spreading of manufactured food. Sea cucumber has a role of sands cleaner and feed itself by filtering the sand/the vase, it participates to the recycling of organic materials and is used as a fertilizer. Sea breeding parks contribute to the natural reproduction of sea cucumbers in the way of disappearance due to last years overfishing. PAGE 24

25 PHILEOL AGRI BUSINESS MADAGASCAR Entrepreneurs: Stephane Philizot, Njaka Ravelomanantsoa and Narisoa Razakasolo In portfolio since : 2008 I&P Share : 30,5% Employees: 21 PHILEOL is a Madagascan plant producing gross castor oil in south Madagascar and commercializes it in Europe. The company organizes the castor oil farming and the harvest of seeds in partnership with local communities, contributing actively to the development of this Madagascan zone particularly poor. PHILEOL has enabled the implementation of an economic activity responding to sustainable development problems in the poorest Madagascan zone. Stephane Philizot is a French chemical engineer. He is associated with two Madagascan agricultural engineers, Nary Razakasolo and Njaka Ravelomanantsoa to create Phileol Madagascar in I&P Partnership I&P is committed alongside Phileol to: Enable it to equip itself with pressing and farming exploitation machine Structure the company and accompanying it in the improvement of its accounting and financial system and in its organization. Impacts Accompanying of near peasants cultivating about ha of castor oil Valorization of non arable lands PAGE 25

26 SAINT LOUIS FINANCE MICROFINANCE SENEGAL In portfolio since : 2011 I&P Share : 19,9% Employees : 65 CEO : Philippe Couteau Saint Louis Finance is a new microfinance institution that aims to provide financial services to people in urban and rural areas located in northern Senegal: solidarity and individual loans, savings, insurance and the future of mobile banking. Headquartered in St. Louis. It opened an office in Louga and deploy a new agency about a year in the North, where the supply is lower than in Dakar. It has the specific expertise of consultants FIDES in the establishment of microfinance institutions business (corporations) to the rural world. I&P Partnership I&P was the first investor to confirm its commitment to Saint Louis Finance and accompanied him in setting up the project I&P now participates in strategic discussions with him (Governance, etc.) Impacts Access to financial services in rural and peri-urban (already 6,500 borrowers and savers 7500) Objective of demonstrating the viability of microfinance in private form in West Africa, where NGOs and cooperatives dominate DEC 2013 PAGE 26

27 TRAINIS TRAINING MALI Entrepreneur : Daouda Coulibaly In portfolio since : 2010 I&P Share : 35% Trainis society, founded in 2008 by Daouda Coulibaly, offers general high-level training in management. These courses are focused on one to three weeks and led by a panel of trainers African or European experts. Daouda Coulibaly was educated in Mali before getting a scholarship to study in France. Parallel to his university studies in geography, he was self-taught in computer and creates one of the most visited African websites. On his return to Mali, he created a company in the field of computing. This resale business equipment allows him to see that there is a high demand for computer courses right level. So he started a training successfully, then diversified into the provision of international management seminars, with higher added value. It has mobilized high quality trainers around general management training on topics such as project management, HR, and strategic management. Trainis responds to a strong need for training among African executives who want to get in line with international standards. In a context of openness to globalization, these managers are looking to accelerate their career so far hampered by basic training deemed insufficient. I&P Partnership I&P is committed alongside Trainis: By identifying influencers and prospects of different "product lines" of Trainis Participating in the development of the strategic development plan for 3 years Providing support to the design and formalization of communication policy of the company Impacts 10 jobs created Creating a sub-regional player in professional training aimed at African executives DEC 2013 PAGE 27

28 Your contacts: Thank you for your attention. For more information, please visit our website: Jean-Michel SEVERINO CEO, I&P Emilie DEBLED Communication & PR Officer Investisseurs & Partenaires (I&P) 10 rue de Sèze, Paris - France DEC 2013 PAGE 28