Emerging Capital Partners III, L.P.

active

The proposed Project is a $25 million investment in ECP Africa Fund III PCC (“ECP III”), which represents 5.6% of the current fund size. After the proposed funding, IFC’s investment may represent 5.2% of the fund size. Prior to the global financial crisis, IFC had declined investing in ECP III as no additionality was evident. However, given the effect that the current global credit crisis has had on PE fundraising, IFC now has a catalytic role and IFC’s support to ECP III is considered appropriate. The Fund Manager has also welcomed IFC’s help in updating its Social and Environmental Management System (SEMS), Integrity Due diligence (IDD) and technical expertise. The proposed $25 million equity investment in ECP III is expected to catalyze additional $215 million from equity investors and $100 million in debt, and promote responsibility and sustainability by improving Environmental, Social and Governance Standards of the Fund Manager. The proposed Project is also expected to facilitate development of the Integrity Due Diligence Process of the Fund Manager and indirectly, its investee companies. Furthermore, the Project will assist in mobilizing part of the much needed capital and expertise required to continue steering African economies on a path of sustainable growth. The Fund Manager has demonstrated through its past performance in favorable and unfavorable investment conditions that it has the capacity to help companies grow at above average rates and expand regionally.