Project detail - IAFPEF JJ LIMITED

IAFPEF JJ LIMITED

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Who is our client

J&J Africa Group is a leading transportation and logistics company headquartered in Beira, Mozambique, servicing exports to and imports from Mozambique, Zambia, Zimbabwe, Malawi and the DRC. Through its extensive truck fleet as well as warehouses and terminal storage facilities in Beira, the company plays a key role in linking African producers and consumers with global markets.

Funding objective

As part of a consortium led by the Carlyle Sub-Saharan Africa Fund and including the Investec Africa Frontier Private Equity Fund (also an FMO client), FMO's funding will be used to acquire a significant stake in the company. The investment will see the consortium members partner with J&J Africa's founder-management to help enable the company's growth and development. By building on J&J Africa's current service, as well as adding new offerings, the company will better serve current and future customers in the region. Enhancements to the company's management of environmental, social and governance matters will add to the attractiveness of the business to a regional or international strategic acquirer in the future.

Why we fund this project

The investment creates significant development impact by addressing one of the key bottlenecks to economic growth in Africa: transportation and logistics. This investment will support improved access to basic goods and services, particularly along the agricultural value chain, as well as foster job creation and tax revenue generation. FMO is playing a role in the development of an environmental and social management system to help the company to achieve best practices.

Region
Africa
Country
Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
4/4/2013
Total FMO financing
USD 11.50 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+