Mixta Africa

completed

Mixta Africa (MA) is a Spanish real-estate/land development company focussing on the development of affordable housing in Africa for low and middle-income households. The company’s business strategy and philosophy is to: - build decent and safe housing for its customers; - utilise best practices during construction, and provide quality housing to customers as per global standards; - set competitive and transparent prices; and, - generate wealth and jobs by promoting the use of local companies and professionals to develop the projects. Mixta Africa’s two business areas are: - the development of housing projects; and, - land transformation projects, with an exclusive African focus. (In addition, the current land transactions in Senegal have required Mixta to commit to hotel development although this is not their core business). The land transformation projects involve acquiring land plots, undertaking legal transformations and physical improvements and selling them to others for housing, business construction or other activities. All development of land and housing occurs through local construction companies. The business model requires the establishment of a subsidiary in each selected country whereupon land identification, evaluation and acquisition, and subsequently, project design, development and implementation, occur. Initially MA starts with pilot projects to accurately assess cost and demand prior to making longer-term commitments. Mixta Africa has focussed on Morocco and Senegal. Mixta Morocco has completed its pilot phase and is now managed as consolidated business while Senegal remains in emerging market categorisation subject to completion of the pilot project. Nonetheless these countries have the largest in-country teams and the largest portfolio of land identification, evaluation and acquisition as well as a range of completed and on-going projects. Mixta Africa plans to enter the Egyptian, Tunisian, Algerian, Mauritanian markets and to this end has established subsidiaries in these countries and is in the process of prospecting, evaluating and acquiring land. It is proposed that IFC take an equity stake in the parent company and provide a revolving loan to finance a number of specific projects, namely: - Anass, Tanger, Morocco; - Essafia (Phase I and II), Martil, Morocco; - Marjane, Tetuan, Morocco; - Costa Cabo, Morocco, and - Residance La Paix (Phase II), Senegal. Table 1 (attached) presents a summary project description. A desk-based review of these projects has been conducted. Subsequently the revolving fund may be used to support other projects.