Our investment
Description of the investment.
Description of the investment.
We invested in African Rivers Fund IV to increase access to credit for SMEs in DRC, Zambia, Uganda and Angola.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Increased economic opportunities for employees and suppliers, as well as increased access to goods and services for domestic consumers due to increased firm growth and well-being (SDGs 8.3, 8.5). |
|
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How?
| How? |
|---|
|
The investment will support SMEs' need for capital to enable their growth, improve their liquidity and revenue generation. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Employees and suppliers |
DRC, Uganda, Angola and Zambia |
Mix of full time employees and temporary employees, the majority of which are expected to be low-income. |
| Consumers |
DRC, Uganda, Angola and Zambia |
Likely mostly urban. Given target geography and poverty levels in these countries, we expect some consumers to be low-income. However, given goods and services provided by SMEs we expect a majority to be from higher income segments. |
How much?
| Scale | Depth/Duration |
|---|---|
|
We expect the fund to invest in more than 50 companies. |
We expect the impact to be the deepest for businesses without access to other sources of finance and low-income employees who either become employees or experience job stability, wage increases or improved working conditions as a result of the financing. We expect the impact to be the deepest for low-income consumers or consumers living in rural areas who have more limited access to goods and services. Impact is expected to be long-term. |
Contribution/additionality
| Contribution/additionality |
|---|
|
It is unlikely to reach target fund size without our contribution. We will also have value additionality by helping to improve the fund's E&S processes and systems. |
Risk
Execution RiskThere is a risk that the fund does not manage to originate sufficient pipeline across geographies. Evidence RiskExternal RiskMacroeconomic risk and fragility of the markets the fund targets is an inherent external risk. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
In collaboration with other DFIs, we agreed an ESAP with the GP which focuses on having dedicated E&S capacity, strengthening their approach to E&S risk management which includes human rights, safeguarding and physical climate risks.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- June 2024
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2024
- Project number
:
An identifier number shared by investments in the same project.
- D6020
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Central Africa, East Africa, Southern Africa
- Investment type :
- Fund
- Start date :
- March 2024
- Amount :
- $15m
- Currency of investment :
- USD
- Fund Manager:
- XSML Capital Ltd
- Domicile
:
The company or investment fund’s place of incorporation.
- Mauritius
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
Investments made by this fund into companies:
For further information about these companies, visit https://www.xsmlcapital.com/
| Investment name | Country | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Rovis Investments Ltd | Uganda | East Africa | Construction and real estate | June 2024 | Active |
