Proparco Forks Out USD 10 Mn For SA-Based Metier’s New USD 113 Mn Investment Fund

By  |  January 16, 2020

South Africa-based investment manager, Metier, has successfully reached a first close at USD 113 Mn for its second infrastructure fund. Metier’s Sustainable Capital International Fund II is the Johannesburg-based private equity manager’s fourth investment fund, alongside its two existing growth capital initiatives and their first infrastructure fund.

Among the first investors to acquire final approval from its Investment Committee, Proparco — the development financial institution partly owned by the French Development Agency (AFD) and private shareholders from the developed countries and developing nations — has made an initial commitment of USD 10 Mn to the fund. In order to reach this first close, the fund also secured commitments from several other European Development Finance Institutions (DFIs). 

Metier Sustainable Capital International Fund II is targeting a final close above USD 150 Mn for investment into renewable energy, resource efficiency, and energy efficiency projects and platforms across Africa, which will make significant direct contributions to both the strengthening of the private sector and climate action in Africa.

From the near-term pipeline alone, it is estimated that the investments will drive the creation of 1,700 jobs and the reduction of carbon emissions by more than 220,000 tons annually, and will allow around 390,000 people to gain improved access to green energy in Kenya and Uganda.

This fund investment hence contributes to four of the SDGs: Affordable and clean energy (no. 7), industry, innovation and infrastructure (no. 9), climate action (no. 13), decent work and economic growth (no. 8).

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Proparco played an instrumental role in ensuring the full alignment of the fund strategy and investment decision-making process of the fund manager with the Paris climate agreement. 

This is the AFD Group’s second transaction with Metier and it comes after development in 2016 when the AFD Group invested alongside Averroes in Metier’s second-growth capital fund via FISEA, the Investment and Support Fund for Businesses in Africa, owned by the AFD and advised by Proparco.

Through the USD 10 Mn commitment to Metier Sustainable Capital International Fund II, Proparco will continue its support of renewable energy, resource efficiency, and energy efficiency projects in Africa.

Over the last few years, Proparco has led investments in a number of African startups including South African fintech startup, JUMO, and Kenya’s MSurvey.

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