Based in Malta. Mediterrania Capital Partners, a Private Equity company, invests mainly in development capital with SMEs and ETIs in North Africa and in Sub-Saharan African countries. Mediterrania Capital Partners announces the sale of its stake in the Cofina Group, leader in mesofinance and transactional financial services in West and Central Africa, to another investment fund, Development Partners International (DPI).
Based in Abidjan, the Cofina Group, founded by Jean-Luc Konan in 2014, aims to help entrepreneurs and SMEs obtain medium or long-term financing. Today, the group provides a wide range of banking products, including domestic and international money transfer, financing solutions and related advisory services to over 254,000 customers. With 60% of Cofina’s credit customers being first-time borrowers, the group is helping to significantly reduce inequalities and promote economic growth on the continent. The Cofina Group is present in eight African countries: Côte d’Ivoire, Senegal, Guinea Conakry, Gabon, Mali, Congo Brazzaville, Burkina Faso and Togo, and employs more than 1,400 people (half of whom are women).
In April 2018, Mediterrania Capital Partners entered the capital of Cofina by acquiring a minority stake. This investment, intended to support Cofina’s ambitious geographical expansion and product diversification plans, has contributed to considerably broadening the group’s client and product portfolios.
During the mandate of Mediterrania Capital Partners, Cofina implemented a growth strategy centered on the development of financing solutions in order to support SMEs in their development and engagement in the granting of loans and their collection services. The group has also launched mobile and web banking applications to facilitate branchless banking, allowing customers to conduct financial transactions from their mobile phones and computers.
Thanks to the group’s product and geographical diversification, Cofina’s net banking income reached 40 million euros in 2021.
In addition to ensuring significant growth in activity and expanding the group’s presence in the region, Cofina has opened subsidiaries in Burkina Faso and Togo as well as an office in Paris to meet demand from the diaspora. African in the French capital.
During the same period, Cofina launched “Fin’ELLE”, a branch of microfinance dedicated to empowering women entrepreneurs and launched several initiatives to support start-ups and young entrepreneurs. With support and guidance from Mediterrania, Cofina has also implemented a wide range of ESG initiatives focused on promoting social inclusion to help empower communities and grow economies.
One of the pillars of Cofina’s social responsibility policy is to provide community mentoring with the aim of sharing its know-how with traditionally socially excluded households. The group is also actively involved in many charitable projects and regularly donates food and supplies to schools and clothing to orphanages, funds water pumps providing clean water to hospitals, farm equipment to rural entrepreneurs, and more.
Hatim Ben Ahmed, Managing Partner – Mediterrania Capital Partners: “When we invested in Cofina in 2018, we saw the enormous opportunity that the company represented, not only from a financial point of view, but also as a key promoter of the social inclusion in Africa. Four years later, all our expectations and forecasts have been exceeded and we are proud of the transformation of Cofina into a robust company with a long-term vision and sustainable growth.”.
Pacôme ZahabiSenior Director-Sub-Saharan Africa – Mediterrania Capital Partners: “Working closely with the management of Cofina, we have strengthened the governance of the company, upgraded its systems and established discipline and decision-making processes at all levels. of the organization while putting more emphasis on social and environmental issues”.
Jean Luc Konan, Founder and CEO – Cofina Group: “The support of Mediterrania Capital Partners has been essential in transforming Cofina into a stronger company with a clear vision and implementing the structural bases in order to take it to the next level. We are very pleased with the active involvement Mediterrania Capital Partners has shown and excited to continue to grow our business even further alongside new investors”.
This transaction marks the second divestment of Mediterrania Capital Partners’ MC III fund, following the IPO of TGCC in December 2021.
Hatim Ben Ahmed, Managing Partner for Mediterrania Capital Partners, was in charge of the transaction.
Legal advice: KZ and Partners