BUSINESS PARTNERS INTERNATIONAL. SO
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
Business Partners (BP) is a well-known and experienced actor in the small and medium enterprise (SME) sector in South Africa. This specialist risk finance company actively supports entrepreneurial growth by providing financing, specialist sector knowledge and added-value services to viable family-owned SMEs. In its 30 years of operations in South Africa, over 32,000 SMEs have been supported in a profitable manner. In order to replicate the model in other African countries, BP established Business Partners International (BPI) in 2004 to conduct fund management activities.
What is our funding objective?
The proposal relates to BPI’s newest initiative: the USD 40 mln Business Partners International Southern Africa SME Fund. The fund will provide risk capital finance to SMEs that can demonstrate viable business plans and sustainable market demand, in Namibia, Zimbabwe, Zambia and Malawi. Local offices will be established in these countries, with local investment teams that will be supported by BPI management and BP’s operational infrastructure. Through this proximity to its investees, a hands-on approach is secured. FMO’s investment is a USD 6 mln participation from MASSIF, which makes up 15% of the total fund size.
Why do we fund this investment?
SMEs play an important role in the development of many emerging economies, yet these enterprises often find it hard to access long-term financing. These companies are often too large to be funded by MFIs, but at the same time considered too risky by commercial banks because the vast majority of SMEs are family-owned enterprises, such as supermarkets, transport companies, and construction companies. This fund meets a clear need by providing innovative risk finance solutions to firms that cannot access long term capital elsewhere.
- Region
- Africa
- Country
- Africa
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 12/21/2012
- Total FMO financing
- USD 6.00 MLN
- Funding
- MASSIF
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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