British International Investment

African Development Partners III

Cote d'IvoireEgyptNigeriaSouth AfricaTunisiaAfricaNorth AfricaSouthern AfricaCommunications & IT servicesConsumer - HealthConsumer - other servicesFinancial servicesFood & Agriculture

Development Partners International (DPI) is an investment fund manager which looks to invest in the pan-Africa region. The UK-based firm was founded in 2007. DPI’s strategy is to build a diversified pan-African portfolio of investments in established and growing companies.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

Our commitment will support an important African private equity player to direct capital and value add to companies, enabling their growth, resulting in direct and indirect job creation and with outcomes in line with BII's priorities (e.g. climate, gender, job quality). In 2021 we made a further investment in the fund.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact

Improve economic opportunities (SDG 8.5) through direct/indirect job creation, and increase access to goods and services, including healthcare.

How?

Primary Secondary

Investments will be made, primarily growth capital and value addition in 10-12 large companies, resulting in direct and indirect economic opportunities, as well as access to a variety of goods and services for customers (including healthcare, financial services)

Our countercyclical commitment will improve the Manager’s chances of weathering the COVID-19 crisis. If the fund generates returns that are attractive to commercial investors, it can help mobilise additional capital in the medium-long term. Signposts of success would be the raise of a larger fund with increased commercial LP presence (number, value and percentage).

Who?

Stakeholder Geography Characteristics
Employers

Pan-Africa

Variable (skilled/unskilled). The current portfolio employs 30% women and the goal is to increase % of women in workforce.

Suppliers

Pan-Africa

Variable (skilled/unskilled). The current portfolio employs 30% women and the goal is to increase % of women in workforce.

Customers

Pan-Africa

Typically middle income customers will be targeted; this may include low income in some instances. Will also seek to increase number of investees that target women as consumers

How much?

Scale Depth/Duration

The previous portfolio employs 30k people and had a median 23% CAGR job creation, in the top quartile of BII’s mid and large cap Africa Funds benchmark.

Previous portfolio companies reached 1.8m banking or microfinance customers; and 7,500 university students

  • Depth: Workforce training and job quality is of 3 thematic priorities: 18k people trained to date. No track record data available on improved incomes of employees or dimensions of improved job quality.

  • Duration: It will take 5 to 10 years and repeat success for the catalytic impact to materialise.

Contribution/additionality

Contribution/additionality
  • Financial additionality: It seems likely that they will reach their fundraising target without BII, and potentially exceed it. If the fundraising does not reach hard cap, our capital will proportionately increase the impact

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

2.0-2.6

Risk

External Risk
  • Relates to probability that regardless of the fund’s performance, commercial investors will remain averse to investing in the African Private equity market due to high perceived market risk or macro-economic dynamics. the market impact relies on repeated successes from multiple players. This risk is inherent in supporting these markets and has to be tolerated.
Execution Risk
  • Relates to fund failing to deploy capital at the pace and scale expected delivering returns that are attractive to commercial investors, negating both the Direct and the market impact expected. This is partially mitigated by backing a top-quartile GP.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

The fund manager has a well-established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D3675
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Africa, North Africa, Southern Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Consumer - Health, Consumer - other services, Financial services, Food & Agriculture

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    June 2019
    Amount :
    $80m
    Currency of investment :
    USD
    Fund Manager:
    Development Partners International
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Guernsey
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    :
    Fully qualified

Related investments made by BII into this fund:

Investment name Commitment Region Sector Start date Status
Investment 02 $20m Africa, North Africa, Southern Africa Communications & IT services, Consumer - Health, Consumer - other services, Financial services, Food & Agriculture March 2021 Active

Investments made by this fund into companies:

For further information about these companies, visit http://www.dpi-llp.com

Investment name Country Region Sector Start date Status
Channel VAS (Optasia) Nigeria West Africa Communications & IT services September 2019 Active
Compagnie Financiere Africaine Cote d’Ivoire SA Cote d'Ivoire West Africa Financial services June 2022 Active
Kazyon Egypt North Africa Consumer - other services June 2022 Active
Kelix Bio Limited Egypt, India, Morocco North Africa, South Asia Consumer - Health October 2020 Active
Marcyrl Pharmaceutical Industries Egypt North Africa Consumer - Health March 2023 Active
MNT-Halan Egypt North Africa Financial services July 2021 Active
Pan-African Towers Limited Nigeria West Africa Communications & IT services December 2023 Active
Sicam Tunisia North Africa Food & Agriculture May 2020 Active
Solevo B.V. Angola, Burkina Faso, Cameroon, Cote d'Ivoire, Madagascar, Mali, Senegal Central Africa, East Africa, West Africa Food & Agriculture March 2023 Active
Ukheshe South Africa Southern Africa Financial services December 2022 Active

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