British International Investment

Catalyst Fund II LP

AfricaKenyaAfricaFinancial servicesFood & AgricultureManufacturing

Catalyst Fund II focuses on investments in small and mid-sized companies with strong growth prospects in the region. 

The fund’s target geographies include Kenya, Tanzania, Ethiopia, Uganda, Rwanda, Zambia and the DRC. Catalyst Fund II invests in sectors reflecting a rising consumer demand, such as consumer staples, financial services, industrials and healthcare.

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

Our investment

Description of the investment.

In 2016, CDC invested $30 million in Catalyst Fund II, alongside the EIB, the IFC, Proparco and Swedish DFI, Swedfund. This follows on from our $15 million investment in Catalyst Fund I.

Catalyst Fund II is targeting a total fund size of up to $175 million.

Our investment will enable the fund manager to stimulate growth prospects for East African SMEs.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

Much of East Africa has seen a period of economic and political uncertainty, restricting the growth of the region’s SMEs and limiting cross-border trade. 

Our investment enables the fund manager to support high-growth East African SMEs that are expanding in response to growing domestic consumer demand, and strengthen intra-regional trade by tapping into infrastructure improvements and technological innovation.  It also supports the creation of direct and indirect jobs.

The fund manager also provides strategic and operational input to investee companies. This ensures effective governance and enables the development of business skills.

The fund has already completed the acquisition of a leading Kenyan biscuit manufacturer.

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

We are working closely with the fund manager to improve its existing ESMS, including delivering an action plan.

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.

    :
    D146
    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
    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.

    :
    Financial services, Food & Agriculture, Manufacturing

    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 :
    March 2017
    Amount :
    $10m
    Currency of investment :
    USD
    Fund Manager:
    Metier Private Equity International
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius

Related investments made by BII into this fund:

Investment name Commitment Region Sector Start date Status
Investment 01 $20m Africa Financial services, Food & Agriculture, Manufacturing December 2016 Active

Investments made by this fund into companies:

For further information about these companies, visit https://www.metier.co.za/

Investment name Country Region Sector Start date Status
Britania Foods Limited Kenya East Africa Food & Agriculture December 2016 Exited
Mammoth Holdings Africa Africa Manufacturing June 2018 Active
Prime Bank Kenya East Africa Financial services December 2018 Active

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