DEG invests in sustainably-managed companies in North and West Africa

DEG is continuing its long-standing collaboration with Mediterrania Capital Partners and is increasing its stake in the latest fund Mediterrania Capital IV Mid-Cap by a further EUR 15 million, bringing the total amount invested to EUR 25 million. The private equity fund invests across core sectors essential to economic development in North Africa and French-speaking markets in West Africa.

The fund’s investments are expected to create more than 1,500 jobs and will also make a substantial contribution to economic development in the region, as they are expected to generate approximately EUR 800 million in local income. In addition, Mediterrania Capital IV is recognised as a qualified “2X Challenge” fund, and thus takes specific action to promote women in business.

Capital plus advice through Business Support Services (BSS)

The fund pursues its own impact and climate strategy, which is geared towards the United Nations’ Sustainable Development Goals (SDGs). DEG’s commitment goes beyond capital: it also provides targeted Business Support Services (BSS) through its subsidiary DEG Impulse. BSS have already been able to provide support for a number of initiatives to improve climate performance at Mediterrania Capital Partners’ portfolio companies.

These include:

• the creation of CO₂ balance sheets spanning the entire supply chain and introducing measures to reduce emissions;
• conducting energy efficiency assessments and identifying steps to reduce energy consumption; and
• optimising energy efficiency, including expanding the use of renewable energies.

Working together in this way has helped portfolio companies to reduce emissions in a targeted manner and to implement sustainable strategies. Moreover, there are plans for a further BSS initiative for the new fund, which will focus on climate protection, gender equality and ESG-related projects.

Through its involvement, DEG is playing a part in boosting sustainable growth in Africa and helping companies to become more resilient and operate with more climate-friendly practices.