The African Development Bank Group and Italy’s Cassa Depositi e Prestiti (CDP) have approved a combined $35 million investment in RMBV North Africa Fund III, strengthening access to long-term capital for established businesses across North Africa.
The African Development Bank (AfDB) will provide $15 million, while CDP will invest $20 million through the Growth and Resilience Platform for Africa. The fund is targeting up to $300 million in total capital to support the growth and expansion of mid-sized companies.
The investment is expected to have a positive impact on businesses that need funding to expand operations, adopt new technology, enter new markets and make acquisitions. Unlike conventional debt, equity financing does not come with fixed repayment obligations, giving companies greater flexibility as they grow.
Supporting Growth in Key Sectors
RMBV North Africa Fund III will focus mainly on Egypt, Morocco and Tunisia, while also having the ability to invest in other North African markets. Its target sectors include consumer goods and services, healthcare, education and financial services, areas where demand continues to grow as populations increase, cities expand and more people seek formal services.
Beyond providing capital, RMBV plans to work directly with its portfolio companies to improve how they operate. This will include strengthening corporate governance, introducing digital systems, developing management teams and helping businesses expand into new markets.
The fund has also attracted significant support from European development finance institutions. The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) have each committed up to $80 million, while Proparco has also invested, although the size of its commitment has not been publicly disclosed.
The involvement of these institutions is expected to provide RMBV with substantial long-term funding while also placing environmental, social and governance standards at the centre of its investment approach.
Gender inclusion is another important part of the fund. The EIB requires at least 30% of the portfolio to contribute directly to gender equality, while the EBRD is providing technical assistance to help develop a gender action plan.
Investment Could Strengthen Jobs and Local Businesses
CDP’s $20 million investment is being made through the Growth and Resilience Platform for Africa, a co-investment partnership established with the AfDB in 2024. The platform forms part of Italy’s Mattei Plan for Africa, which seeks to strengthen economic cooperation through investment in private enterprise, infrastructure and food security.
For North African companies, the fund could create new opportunities to secure the capital needed to build facilities, acquire other businesses, introduce technology and expand across the region. This could allow mid-sized companies to move beyond local operations and compete in larger markets.
The wider economic impact could extend beyond individual businesses. Increased investment in mid-market companies has the potential to support job creation, strengthen local supply chains and improve access to essential goods and services.
With the combined $35 million commitment from the AfDB and CDP adding to support from other major development institutions, RMBV North Africa Fund III is positioned to play a role in expanding private-sector investment and helping established North African businesses move into their next stage of growth.
