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Mediterrania Capital IV (MC IV), a private equity fund focused on North and West Africa, has secured additional support from the German development finance institution DEG, which has increased its investment by EUR 15 million (USD 16.2 million).
This new capital boost brings DEG’s total investment in the fund to EUR 25 million (USD 27 million), reflecting its confidence in MC IV’s capacity to promote economic growth, support local businesses, and generate jobs in some of the continent’s most rapidly growing sectors.
Since its inception, MC IV, managed by Mediterrania Capital Partners, has concentrated on investing in mid-sized companies with strong growth potential, targeting sectors critical to the region’s economic transformation. These sectors include healthcare, logistics, fast-moving consumer goods, education, and financial services—industries essential for development and offering significant investment opportunities.
The fund’s strategy involves acquiring minority stakes in well-established businesses, providing them with both capital and strategic expertise to scale operations and enter new markets. With plans to invest in 8 to 10 companies, each receiving between EUR 20 million (USD 21.6 million) and EUR 50 million (USD 54 million), MC IV aims to foster long-term, sustainable growth. Around 75% of the fund’s capital is allocated to North Africa, while 25% is directed toward Sub-Saharan Africa, ensuring a broad yet targeted regional impact.
DEG’s partnership with MC IV began in May 2023 when it took part in a EUR 75 million (USD 81 million) fundraising round that played a pivotal role in financing the acquisition of Laprophan, a prominent Moroccan pharmaceutical company. This fundraising round also saw participation from other major development finance institutions (DFIs), such as FMO, the Dutch entrepreneurial development bank, and Proparco, the private sector arm of the French Development Agency.
Since that time, MC IV has moved swiftly to build its portfolio, making strategic investments that underscore its commitment to fostering growth in the region. In addition to its stake in Laprophan, the fund made an investment in Cash Plus, a leading Moroccan fintech company, in October 2023. These investments demonstrate MC IV’s ability to identify and back businesses that not only have strong financial potential but also make significant contributions to the economic and social development of their markets.
Beyond providing capital, DEG actively supports MC IV’s portfolio companies through DEG Impulse, its dedicated advisory initiative. By offering business support services, DEG helps these companies enhance operational efficiency, reduce CO₂ emissions, incorporate renewable energy solutions, and improve sustainability practices. The aim is not solely to generate financial returns but also to ensure that businesses operate responsibly and contribute to the region’s long-term stability.
MC IV is also a 2X Challenge fund, which means it is committed to promoting gender equality by supporting businesses that empower women in leadership roles and the workforce. As part of this effort, the fund adopts targeted measures to ensure that gender diversity is embedded as a core component of its investment strategy.
For Mediterrania Capital Partners, DEG’s increased investment signifies a strong endorsement of its strategy and execution capabilities. With the added capital, MC IV is in a prime position to grow its portfolio and further strengthen its influence on the African private equity landscape.
As the fund continues to deploy capital and scale its investments, its progress will be keenly observed. With growing interest in African markets and an increasing recognition of the region’s potential, the success of MC IV will serve as a benchmark for how private equity can shape the next phase of Africa’s economic growth.
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