IPAE2 provides comprehensive support to high-potential SMEs
Investisseurs & Partenaires’ Afrique Entrepreneurs fund II (IPAE2) is an impact-oriented fund supported by the Dutch Good Growth Fund (DGGF). It invests in 15 Sub-Saharan African countries, focusing on fragile and conflict-affected states. It follows an impact strategy which is centred around small equity investments for entrepreneurs who have no access to other investors.
The challenges SMEs face
The size of the fund’s investments, up to €3 million, allows it to offer support to a range of companies, including mature Small- and Medium-sized Enterprises (SMEs) that play a key role in driving growth in Africa. The struggles that SMEs face in the target countries are often connected to the ability to attract high-quality staff and expertise, determine and deploy effective investments, and grow in terms of innovation and capacity. All these barriers hinder the growth of the businesses, hampering their potential impact.
IPAE2’s Technical Assistance Facility
The quality of IPAE2’s work with the portfolio companies stems from comprehensive support provided by the IPAE2’s Technical Assistance Facility (TAF). This Facility was set up using lessons learned from the previous fund. TAF is now being supported by the Seed Capital and Business Development facility (SC&BD) of the Dutch Good Growth Fund. This support is dedicated to longer-term capacity building of the IPAE2 fund’s personnel, as well as investment strategy and practice-oriented management training. This will help the TAF to assist SMEs in attaining new levels of professionalisation, efficiency and growth.