Rabat – The European Bank for Reconstruction and Development (EBRD) has reiterated its commitment to continue supporting mid-cap companies across North African countries, including Morocco.
The bank on Thursday announced its commitment through a $40 million investment to SPE REF III, a newly raised fund managed by SPE Capital.
This fund seeks to contribute to mid cap companies growth in different countries, including Egypt, Tunisia, and Morocco.
The partnership goes beyond just financial backing, according to the bank, which has been pledging to diversify financing options and aid for businesses in the region.
The PEF III fund targets eight to twelve businesses with high growth potential. Specific sectors of interest include manufacturing, goods production and processing, essential services like healthcare and pharmaceuticals, and the private education sector.
These industries have demonstrated resilience during market fluctuations, making them prime candidates for investment.
“This investment will contribute to the resilience of financial markets and enhance the competitiveness of local businesses,” the EBRD noted in a press release. The focus is not just on financial returns; the EBRD emphasizes the long-term impact on the region.
Traditionally, access to capital for growth can be limited. EBRD, however, hopes to empower local companies and enhance their competitiveness through providing an alternative source of funding via private equity.
By supporting business growth, the initiative aims to create a ripple effect, fostering sustainable development and improving the quality of life for communities across North Africa.
Since 2012, the EBRD has invested over €19 billion in various sectors of the Moroccan, Egyptian, and Tunisian economies. This $40 million commitment signifies a continued dedication to the economic development of the region.
Nabil Triki, Senior Partner and CEO of SPE Capital, echoed this sentiment, highlighting the “positive and lasting impact” the partnership will have. “Together, we promote sustainable growth and development that benefit both communities and economies,” Triki stated.
