British International Investment

Mediterrania Capital III LP

Cote d'IvoireEgyptMoroccoTunisiaAfricaConsumer - HealthConsumer - other servicesFinancial servicesManufacturing

Mediterrania Capital Partners III is the third fund raised by Mediterrania Capital Partners. This generalist fund targets investments in North Africa (Morocco, Tunisia, Algeria, and Egypt) with a smaller exposure to Francophone West and Central Africa (Cameroon, Cote d’Ivoire, Senegal).

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

Our investment

Description of the investment.

Our investment in MCP III will support well-established local firms that demonstrate strong potential for growth. Investments in these businesses will provide the capital and expertise to support expansion and will help create new direct and indirect jobs, particularly for semiskilled/unskilled workers in a region where youth unemployment is a particular challenge.

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

Support economic opportunities by creating jobs (SDG 8.5).

How?

How?

CDC's investment in MCP III will support the fund to invest in 8 to 12 companies supporting these companies growth and creating jobs.

Who?

Stakeholder Geography Characteristics
Employees

North Africa and Francophone West and Central Africa (Morocco, Tunisia, Algeria, Egypt, Senegal, Cote d'Ivoire, Cameroon)

Primarily low-income.

How much?

Scale Depth/Duration

Creating up to an estimated 5,000 jobs over the lifetime of the fund.

Full-time formal employment is expected to have a sustained impact on stakeholders' livelihoods. The impact is likely to be deeper for markets with high unemployment, including semi-skilled/unskilled labour and youth.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Capital is not offered in sufficient quality by the commercial market.
  • Value additionality: We can bring additional value to the fund through providing guidance on improving business integrity policies and procedures.
  • Mobilisation: Our investment helped enable additional investment from other development finance institutions

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.

1.8-2.3

Risk

Execution Risk
  • the impact case relies on the manager's ability to deliver growth across investees.
Alignment Risk
  • the impact case also requires that the growth to investees businesses leads to job creation.

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 continue to support the fund manager in the implementation of its robust ESMS, particularly in managing specific risks associated with this sector.

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.

    :
    D2870
    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.

    :
    Consumer - Health, Consumer - other services, Financial services, 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 :
    October 2019
    Amount :
    $27.26m
    Currency of investment :
    EUR
    Fund Manager:
    Mediterrania Capital Partners Limited
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius

Investments made by this fund into companies:

For further information about these companies, visit https://www.mcapitalp.com/

Investment name Country Region Sector Start date Status
Akdital Morocco North Africa Consumer - Health March 2020 Active
Aziza Tunisia North Africa Consumer - other services June 2019 Active
Cairo Scan Egypt North Africa Consumer - Health January 2018 Active
Compagnie Financiere Africaine Cote d’Ivoire SA Cote d'Ivoire West Africa Financial services March 2018 Exited
Dislog Industries Morocco North Africa Manufacturing July 2021 Active
MetaMed Egypt North Africa Consumer - Health March 2020 Active
TGCC Morocco North Africa Manufacturing July 2019 Active

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