AfDB and CDP Commit $35M to RMBV North Africa Fund III

Solomon Quaynor (VP of the AfDB) and Paolo Lombardo (Director at CDP) at another event in 2024

The African Development Bank (AfDB) and Italy’s Cassa Depositi e Prestiti (CDP) are committing a combined $35 million to RMBV North Africa Fund III (NAF III), providing additional institutional backing for private-sector expansion across North Africa.

AfDB has approved an equity investment of up to $15 million, equivalent to approximately 5% of NAF III’s targeted capitalization, according to the Bank’s environmental and social assessment. CDP has separately received approval for an investment of up to $20 million through the Growth and Resilience Platform for Africa (GRAf).

Together, the commitments strengthen the capital base of a fund targeting growth-oriented, mid-market companies in Egypt, Morocco, Tunisia, and Algeria.

Investor	Commitment	Investment Vehicle	Role
African Development Bank (AfDB)	Up to $15M	Direct equity investment	Anchor institutional investor
Cassa Depositi e Prestiti (CDP)	Up to $20M	GRAf	Development finance and co-investment
Combined	Up to $35M	—	Support for North African private-sector growth

The investments also build on a broader European and multilateral fundraising effort around NAF III. The European Bank for Reconstruction and Development (EBRD) has committed up to $80 million, while EIB Global committed another $80 million in 2026. French development finance institution Proparco has also partnered with RMBV on the fund.

What Is RMBV North Africa Fund III Designed to Finance?

Managed by RMBV, NAF III is designed to provide equity and equity-related growth capital to mid-cap businesses with strong positions in their domestic markets and potential to expand domestically, across Africa, or internationally.

The fund initially targeted approximately $300 million in capital, although AfDB documentation has referenced a broader target range of $300 million–$400 million. The Bank’s assessment says NAF III expects to make 10–12 investments, with typical holding periods of four to six years and a targeted final close in Q4 2026.

Its investment strategy focuses on four sectors:

• Consumer goods and services: Businesses serving North Africa’s expanding consumer markets.
• Healthcare: Companies addressing demand for medical products, services, and infrastructure.
• Education: Businesses expanding access to education, training, and skills development.
• Financial services: Companies supporting financial access and broader economic participation.

AfDB’s assessment also identifies digital transformation of SMEs as an additional area of relevance to the fund’s strategy.

Which North African Markets Will Receive the Investment?

NAF III is focused on Egypt, Morocco, Tunisia, and Algeria, with Egypt expected to receive the largest allocation.

According to an Italian government document outlining CDP’s proposed investment, 50%–60% of the portfolio is expected to be allocated to Egypt, 20%–30% to Morocco, with the remainder divided between Tunisia and Algeria.

The same document identified an initial pipeline of eight potential investments: five in Egypt, two in Tunisia, and one in Morocco. By sector, the pipeline comprised three healthcare companies, two education businesses, two consumer-goods companies, and one financial-services company.

This geographic concentration reflects the fund’s strategy of investing in established companies with meaningful market positions rather than early-stage startups.

How Does the $35 Million Commitment Fit Into Italy’s Mattei Plan?

CDP’s investment is being made through GRAf, the Growth and Resilience Platform for Africa, a co-investment platform established by CDP and AfDB as part of Italy’s Mattei Plan for Africa.

The partnership was launched in 2024, when CDP and AfDB announced plans to jointly invest up to €400 million over five years, split equally between the two institutions. GRAf was designed to mobilize an additional €350 million from other investors, potentially creating an investment pool of up to €750 million.

GRAf channels capital into African private-sector opportunities through investment funds. Its initial priority areas included food security, SME development, and sustainable infrastructure, while the broader Mattei Plan encompasses areas such as energy, infrastructure, agriculture, water, health, education, and training.

The RMBV transaction is therefore more than a standalone fund commitment: it represents an implementation of the financial partnership established between Italy and AfDB under the Mattei framework.

What Does the Investment Mean for North Africa’s Private Sector?

The $35 million commitment comes as NAF III continues to attract major development finance institutions. With $80 million commitments each from EBRD and EIB Global, alongside Proparco and other investors, the fund is positioning itself as a significant vehicle for institutional capital into North African mid-market businesses.

For businesses, the focus on mid-market companies is particularly significant. Rather than concentrating solely on startups, NAF III targets companies that have already established market positions and require growth capital to scale.

The strategy also gives investors exposure to sectors tied closely to household demand and essential services. With 50%–60% of the targeted portfolio earmarked for Egypt, the country is expected to remain the fund’s largest market, while Morocco, Tunisia, and Algeria provide additional regional diversification.

For AfDB and CDP, the investment demonstrates how development finance institutions are increasingly using private-equity funds to channel institutional capital into established African businesses while pursuing broader economic-development objectives.

 

 

FAQs

1. How much are AfDB and CDP investing in RMBV North Africa Fund III?
AfDB has approved an equity investment of up to $15 million, while CDP has approved up to $20 million through GRAf, bringing their combined commitment to up to $35 million.

2. Which countries does RMBV North Africa Fund III target?
NAF III targets Egypt, Morocco, Tunisia, and Algeria. The fund expects to allocate 50%–60% of its portfolio to Egypt, 20%–30% to Morocco, with the remainder allocated between Tunisia and Algeria.

3. Which sectors does RMBV North Africa Fund III invest in?
The fund focuses on consumer goods and services, healthcare, education, and financial services, with digital transformation of SMEs also identified as a relevant investment theme.

4. What is the Growth and Resilience Platform for Africa?
GRAf is a co-investment platform promoted by CDP and AfDB under Italy’s Mattei Plan. Established in 2024, it aims to mobilize up to €750 million over five years, including up to €400 million from CDP and AfDB.

5. What is the Mattei Plan for Africa?
The Mattei Plan for Africa is Italy’s strategic framework for strengthening economic and strategic partnerships with African countries and institutions. It was unveiled in 2022 and places emphasis on areas including energy, infrastructure, agriculture, health, education, and sustainable development.