- AfriCap invests in a variety of institutional models, reflecting the diversity in Africa and
the desire to maximize the value of exchange and learning from different experiences. Eligible
Institutions can therefore range from-Non Governmental Organizations, Non- Bank Financial
Institutions, Financial Co-operatives and Commercial Banks in Africa.
- A typical capital
commitment to an eligible institution could consist of about $300,000 to $500,000 in equity for a
25% to 35% ownership interest; and/or quasi-equity, in the range of $0.75 to $1.0 million, for an
aggregate exposure of about $1.0 million per investee, in local currency equivalent.
following investment instruments are used in AfriCap-led investments, and may be combined to
provide an appropriate investment package, tailored to meet the needs of each particular investee
- Direct equity, in the form of common fully-voting shares;
- Quasi-equity, subordinated notes with various features - equity conversion, profit-linked return, or other equity premiums - to generate equity-based returns;
- Straight debt where appropriate and where this will stimulate additional lending by local banks to the investee institutions; and
- Guarantees to third party lenders, such as local banks.