Taking into account the provisions for governing bodies that apply under the ‘Freedom of Information Act’ (‘Wet openbaarheid van bestuur’) and the ‘Data Protection Act’ (‘Wet bescherming persoonsgegevens’), the Fund Manager of the DGGF part ‘Financing local SMEs’ will publish its anticipated transactions.
Views
Parties can express their views on the proposed transaction to the Fund Manager by contacting dggf@pwc.com within 30 days after the publication date of the notice. After the transaction has been closed, or after it has become clear that the transaction will not take place, the Fund Manager will respond as soon as possible to these Parties concluding on the expressed views by these Parties.
Description of proposed transaction
Part of DGGF
Financing Local SMEs
Name of Intermediary Fund (IF)
Enko Impact Credit Fund (“EICF”)
Domicile IF
Mauritius
Name of manager of the IF
Enko Capital
Nature of the activities of the IF
EICF is an 8-year close-ended investment fund targeting resilient and non-cyclical SMEs in the consumer, financial services and climate sectors looking to unlock long-term growth.
Size of proposed investment
USD 10 million.
With this investment DGGF is contributing to a total expected fund size of approximately USD 80-150 million.
Intended transaction date
The Fund Manager aims to close the agreement with Enko Impact Credit Fund in Q3 2025.
Expected financial results
A positive financial return on the investment is expected.
Expected impact
Enko will be SDG-focused and impact-aligned with the goal of contributing to healthier businesses that are instruments of prosperity, poverty reduction, and more inclusive societies. Specifically, the fund will focus on SDG 3 (Good health and well-being); SDG 5 (Gender Equality); SDG 7 (Affordable and Clean Energy); SDG 8 (Decent Work and Economic Growth); SDG 9 (Industry, Innovation and Infrastructure); SDG 11 (Sustainable Cities and Communities) and; SDG 12 (Responsible Consumption and Protection).
ESG compliance
As a condition for DGGF investment, Enko will revise their ESG Policy to ensure all relevant ESG risks are adequately covered, in line with most recent ESG standards. The ESG policy shall be in accordance with the DGGF ESG Policy and shall be implemented within six (6) months of the First Closing Date.
Tax compliance
DGGF will invest into Enko Impact Credit Fund. It will be established in Mauritius as a tax transparent limited partnership. Consequently, Enko is disregarded for Mauritius tax purposes and will not be considered a Mauritius tax resident, nor will it be subject to Mauritius corporate income tax. Rather, the investors in the Fund will be taxed in their jurisdictions of residence on their respective share of the investment income. Enko is sector agnostic and will primarily focus on debt investments in Sub-Saharan Africa. The SMEs in which Enko invests are in principle subject to the local statutory tax rates. Enko is not making use of artificial constructions to lower its taxation or the taxation of the SMEs it invests in. The fund requires the companies it invests in to comply with local laws and regulations, amongst others, those regarding tax and Enko will monitor if the SMEs meet their tax obligations. DGGF will monitor whether Enko will meet its ongoing tax obligations and acts in accordance with the DGGF tax criteria.
According to DGGF criteria, the tax team has proposed standard and specific conditions to be included in the investment agreement to continuously comply with DGGF tax criteria.