TLCOM TIDE AFRICA II FUND

Promoter – Financial Intermediary

TLCOM CAPITAL LLP

Location

• Regional - Africa

Description

The operation consists of an equity participation of up to USD 30m in a closed-end venture capital fund investing in scalable start-ups across sectors leveraging digital technologies.

Additionality and Impact

The operation will contribute to the development of a more diversified economic base and more inclusive growth, in particular through its support to start-ups and early stage tech companies. The transformation to a digital economy is at the centre of Africa's economic and social development's strategy.

Moreover, most if not all start-ups in which the fund will invest will have a digital component which will serve to address the insufficient digitalization of the African economy market failure. Lastly, it is expected that EIB's support to this operation will contribute to the adoption of best market practices, especially regarding Environment Social and Governance aspects through mandatory Environmental and Social Management Systems and an EIB's seat at the Advisory Committee to ensure strong governance rules are applied.

The project is eligible under the Strategic Projects Facility ("SPF") and aligned with the Neighbourhood, Development and International Cooperation Instrument (NDICI) ? 'Global Europe' for the current MFF period (2021-2027).

Objectives

The fund aims to provide equity and quasi-equity to start-ups in sub-Saharan Africa and Egypt. The fund will support the growth of the private sector in Africa and the digitalisation of the African economy. The fund will support the achievement of a number of sustainable development goals (SDG) including SDG 8 (Decent work and economic growth), as well as SDG 9 (Industry, innovation and infrastructure). Moreover, digital technologies are a powerful catalyst for socio-political, economic empowerment and participation of women and girls, given their potential to reduce economic and social disparities. As a result, this fund will also pursue SDG5-gender equality.

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

USD 30 million (EUR 28 million)

Total cost (Approximate amount)

USD 150 million (EUR 140 million)

Environmental aspects

The fund's operational guidelines will provide for environmental and social due diligence of investee companies according to EIB's guidelines.

Procurement

The fund is expected to comply with the EIB's procurement guidelines.

Status

Signed - 10/11/2023