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Fanisi Venture Capital Fund
Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Fanisi Venture Capital Fund S.C.A., SICAV (dr.Eur.)
Eastern Africa Region
Private Equity/Venture Cap Fund - Regional
Date SPI disclosed
November 19, 2009
Projected board date
December 21, 2009
Invested: May 24, 2010
Signed: February 15, 2010
Approved: February 4, 2010
Fanisi Venture Capital Fund S.C.A., SICAV-SIF (the “Fund”) is targeting $50 million to make privately negotiated equity and quasi-equity investments in start-ups, early stage and growth orientated small and medium sized enterprises (SMEs) primarily in the East African region (the “Region”) comprising of Kenya, Uganda, Tanzania and Rwanda. The Fund’s maximum size is $55 million. The Fund will target investments of between $ 0.5 and 3 million per Portfolio Company with the goal of investing in about 10 -12 SMEs at any one time and intends to focus on growth-orientated SMEs in various sectors with specific emphasis on Agri-business, Retail, ICT/Technology, Financial Services, Manufacturing, Media, Transportation, Logistics/Distribution, Tourism and Housing sectors.
In addition to the SME Fund, the Fund Manager plans to raise a Business Advisory Services Facility (the “BAS Facility”), an integrated US$3-4 million BAS Facility to be funded by grants with an initial approval in principle of US$2 million from Norfund.
Project sponsor and major shareholders of project company
The Fund is sponsored by Norfund and Amani Capital. Norfund will contribute to the realization of viable projects which balance economic, social and environmental considerations. Amani Capital is a company incorporated in Mauritius to hold the Investment Team’s shareholding interest in the General Partner, the Fund’s investment manager and the General Partner’s carried interest vehicle.
Total project cost and amount and nature of IFC's investment
$40 million is expected during the first close and up to $50-55 million in subsequent closing thereafter. IFC project team proposes an equity investment in the Fund of up to 20% of the aggregate targeted capital commitments, up to a maximum of $7.5 million.
IFC investment as approved by Board
7.5 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
The East African region comprising of Kenya, Uganda, Tanzania and Rwanda.
Anticipated development impact of the project
The Fund is expected to deliver the following strong development impact:
Encourage economic development of private sector companies —all of which will be located in IDA countries— by investing in high-growth companies which is expected to lead to above-average rates of job creation, higher tax revenue, and potentially prepare companies for a local stock exchange listing once market conditions normalize;
Improve companies’ sustainable development by helping implement best practice corporate governance and environmental and social standards;
Finance much needed agri-business projects that the target economies would otherwise have to postpone until they have the financial, technical, and managerial means to implement.
IFC's expected development contribution
IFC brings unique and significant contributions to the Fund that no other investor does. IFC’s participation will be critical to the Fund in the following ways:
Be a catalyst during the crisis: IFC’s involvement will allow the Fund to achieve a viable first closing commitment total and attract additional capital in subsequent closings.
Provide environmental and social (“E&S”) guidelines: IFC will continue to provide its expertise in E&S to the Fund as the Fund is expected to make a substantial number of investments in agri-business related projects.
Advice on fund structure and terms: IFC will share its fund structuring knowledge to ensure that the Fund’s terms conform to commercial best practices.
Offer regional expertise: IFC’s expertise and physical presence across the African region will complement the Fanisi Fund team’s experience in the East African regional markets.
Environmental and social issues - Category FI
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the Fund’s expected portfolio and sectors of investment and determined as the Applicable Performance Requirements: (i) the IFC FI Exclusion List, (ii) the applicable National Social and Environmental Laws and Regulations, and (iii) the IFC Performance Standards. IFC also reviewed the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (“SEMS”). Based on the assessment the Fund Manager will be required to: (i) develop a SEMS, prior to commitment, to the satisfaction of IFC to ensure compliance with the Applicable Performance Requirements, (ii) identify responsible, qualified persons to manage and implement the SEMS, (iii) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements, (iv) notify IFC if a proposed Portfolio Company conducts or intends to conduct any Category A or Category B activity, and (v) submit a periodic report to IFC as per a format to be provided by IFC. Additionally IFC will review the implementation and performance of the Fund’s SEMS for the first three projects, prior to the Fund’s investment, to ensure that the Fund’s SEMS is robust.
For inquiries about the project, contact:
Main Sponsor Contacts:
Ayisi Makatiani/Per Emil Lindoe
7th floor, Purshottam Place, Chiromo Road,
Westlands, Nairobi 00800
+254 20 360 1831
+254 20 360 1100
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433