Boosting North and West Africa's economic growth through increased investment, DEG has upped its stake in Mediterrania Capital IV.
Mediterrania Capital IV Strengthens Economic Development in North and West Africa
Mediterrania Capital IV (MC IV), a private equity fund focused on North and West Africa, has received a significant boost with DEG, a German development finance institution, increasing its investment in MC IV by EUR 15 million (USD 16.2 million), bringing its total investment to EUR 25 million (USD 27 million).
MC IV, managed by Mediterrania Capital Partners, invests in mid-sized companies with strong growth potential across core sectors essential to regional growth, such as healthcare, logistics, education, and financial services. Approximately 75% of MC IV's capital is allocated to North Africa, while 25% is directed toward Sub-Saharan Africa.
This partnership has significantly contributed to economic growth and job creation in the regions. By providing capital to businesses operating in these industries, MC IV supports expansion, innovation, and the scaling of services that are vital to local economies, fostering job creation and strengthening infrastructure.
DEG's investment enables MC IV to leverage long-standing experience and financial backing to back companies that improve healthcare delivery, enhance logistics networks, expand educational opportunities, and broaden financial inclusion. For instance, such investments often help expand access to medical services, optimize supply chains, increase educational reach, and enable financial institutions to serve underserved populations, thereby creating employment opportunities and improving living standards.
DEG's increasing investment in MC IV signifies a strong commitment to and recognition of MC IV's impact on economic transformation in the region. While specific quantitative data on job numbers or growth rates from this partnership are not provided, the increased investment underscores DEG's confidence in MC IV's role in promoting economic development.
MC IV plans to invest in 8 to 10 companies, with each investment ranging between EUR 20 million (USD 21.6 million) and EUR 50 million (USD 54 million). The fund has already made strategic investments in companies such as Laprophan, a prominent Moroccan pharmaceutical company, and Cash Plus, a leading Moroccan fintech company.
The success of MC IV will serve as a benchmark for how private equity can shape the next phase of Africa's economic growth. Beyond providing capital, DEG offers business support services through its initiative DEG Impulse to enhance operational efficiency, reduce CO2 emissions, incorporate renewable energy solutions, and improve sustainability practices.
As MC IV continues to deploy capital and scale its investments, its progress will be closely observed. With the added capital, MC IV is in a prime position to grow its portfolio and continue its mission of promoting gender diversity, economic growth, and job creation in North and West Africa.
References: 1. Mediterrania Capital IV website: https://www.mediterraniacapital.com/funds/mc-iv/
Venture capital, being a key aspect of MC IV's focus, allows them to invest in mid-sized businesses across sectors like healthcare, logistics, education, and financial services, contributing to economic growth and job creation in North and West Africa. This latest investment from DEG, a German development finance institution, will enable MC IV to expand its reach and continue promoting gender diversity, economic growth, and job creation in the region.
