AFRICAN RIVERS FUND III LP
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
XSML was co-founded by two former FMO employees (Jarl Heijstee and Marcel Posthuma) and today manages two private equity funds in Central Africa: the Central Africa SME Fund (“CASF”) and African Rivers Fund I (“ARF I”). Both CASF and ARF I are high-impact funds that provide scarce capital to SMEs in frontier markets, and FMO has invested in both. XSML is currently raising its third fund: African Rivers Fund III (“the Fund”).
What is our funding objective?
XSML is raising ARF III to build on the successful strategy of CASF and ARF I, and the Fund to employ a mixed mezzanine and equity investment approach to build a diversified portfolio of SME investments. ARF III will target a portfolio of some 35-45 investees with target ticket sizes ranging between USD 0.25m and USD 7.5m. The core geographical focus of the Fund will include Angola, the Democratic Republic of the Congo and Uganda.
Why do we fund this investment?
An investment in ARF III aligns strongly with FMO’s strategy to deepen relationships with existing partners and generate a higher impact portfolio. SME financing is scarce in the regions where the Fund will operate, and by investing in the Fund FMO will help empower local entrepreneurs and prove itself a valuable partner for investing in local prosperity.
What is the Environmental and Social categorization rationale?
The E&S categorization of ARF III is B based on the pipeline and on XSML’s strategy. XSML has shown a commitment towards E&S and has an environment and social management system in place as well as E&S coordinators in each of its existing local offices in DRC and Uganda. During its investment process, XSML undertakes E&S due diligence and, if deemed necessary, develop an E&S action plan aligned with the IFC Environmental and Social Performance Standards.
Sub investments
Disclaimer
This data is updated annually so some investments might no longer be in FMO’s portfolio, while some newer investments may not yet be shown.
| Name | Country | Region | Sector |
|---|---|---|---|
| ETS ORANGE | Congo (the Democratic Republic of the) | AFRICA | Diverse Sectors |
| Ranchers Finest Limited | Uganda | AFRICA | Diverse Sectors |
- Website customer/investment
- http://xsmlcapital.com/
- Region
- Africa
- Country
- Africa
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 12/2/2019
- Effective date
- 8/31/2020
- Total FMO financing
- USD 10.00 MLN
- Funding
- MASSIF
-
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