Burkina Faso: Launch of a €2.6m SME fund
This is one of the first impact investment funds in the country.A new 1.7 billion CFA francs (€2.6 million) investment fund dedicated to small and medium-sized enterprises officially started operations on February 5th in Burkina Faso.
Sinergi Burkina, launched by French private equity investor I&P, is one of the first impact investment funds in the country.
Impact investments are investments made into companies with the intention to generate social and environmental impacts along with a financial return.
The company wants to build a portfolio of twenty holdings. It targets startups and small businesses through investments of between 20 million and 200 million CFA Francs. It will also provide technical support and strategic support to entrepreneurs.
"The Sinergi financing offer completes that of I&P, which pursues a fast investment pace in Burkina Faso and West Africa, with amounts comprised between 200 million and one billion CFA francs," said I&P in a statement seen by Jeune Afrique.
The announcement comes two days after Coris Bank announced the strengthening of its budget through a €16 million loan from Oikocredit and OFID. This envelope will also be allocated to SME financing.