Mecene Investment, a private equity advisory company established in Mauritius announced today that it has acquired a 100% stake in AfriCap Investment South Africa.

(JOHANNESBURG, SOUTH AFRICA) – Mecene Investment, a private equity advisory company established in Mauritius announced today that it has acquired a 100% stake in AfriCap Investment South Africa. AfriCap Investment South Africa, renamed Mecene Investment South Africa, is the exclusive advisor to AfriCap Microfinance Investment Company (AMIC), the leading private equity fund dedicated to the microfinance industry in Africa.

Following the successful introduction of financial services to the poor through microfinance, the growing need for capital has led to the genesis of Mecene Investment, a private equity vehicle channeling social capital for the African private sector.

In addition to growing AfriCap and managing the Fintech Africa Technical Services Facility, Mecene Investment SA, is poised to become the leading private equity advisory company, specialized in social investments in Africa. Indeed, Mecene Investment plans to launch in 2009 and 2010 several initiatives that would draw significant investment capital in the microfinance industry in Africa. The company has undertaken fund raisings for a debt fund, and is currently exploring the launch of a microfinance Islamic investment fund. An extended microfinance fund investing in insurance, housing and leasing will also be launched soon. “Mecene Investment’s vision is to play a leading role in poverty reduction and economic development in Africa by investing in SMEs active in industries with an inherently high social, environmental and developmental impact. The team located in Johannesburg will realize its vision by raising social capital worldwide and investing in high growth locally owned and managed SMEs leaders in the target industries,” stated Wagane Diouf, CEO of Mecene Investment.

The Company has recently established an Advisory Board composed of 7 outstanding individuals, committed to the development of the continent and collectively bringing to Mecene, experience in social entrepreneurship, governance, venture capital and investment banking. “As an African, I am honored to join the Advisory Board of Mecene Investment, an independent Fund Management Company dedicated to serving the Bottom of the Pyramid,” stated Blessing Rugara, Co-founder of Circle Capital Venture in South Africa.

To date Mecene Investment has invested in 20 different microfinance institutions across the continent. Its first fund, AfriCap Microfinance Fund, produced a USD net IRR to investors of 15%. In addition to a commendable return, AfriCap Microfinance Fund generated an outstanding social impact. At the time of its divestment, the Fund served in excess of 370,000 borrowers and 2 million savers through its portfolio companies.

The choice of industry focus, coupled with the successful track record of the management team with its first investment fund, Africap Microfinance Fund, positions Mecene to become the leading private equity fund manager for socially responsible investments in Africa.

ABOUT MECENE

Mecene Investment is a private equity advisory firm, specialized in socially responsible investments in Africa. The company draws on its successful private equity experience in Africa, especially in the microfinance industry, to promote equity and debt investments in industries that provide high social impact, environmental and developmental impact.

We, at Mecene Investment, believe that any effort to curb poverty in Africa must have at its core the promotion of entrepreneurship within the informal sector. Our vision is to mobilize capital so as to support businesses that provide the informal sector entrepreneur the means to achieve growth and sustainability in an environmentally friendly manner, while delivering high financial returns to our investors.

Mecene Investment intends to play a leading role in poverty reduction and economic development in Africa by investing in small and medium enterprises (SMEs), active in industries with an inherently high social, environmental and developmental impact. To do so, Mecene Investment carefully selects companies with a competent management team and enhances their value by providing them with capital, relationships, technical assistance, management consulting and financial advice.
Mecene investment attracts and retains creative, high-energy individuals passionate about making an impact and achieving success through a positive contribution to the African Continent.
Mecene Investment actively seeks people who challenge conventional wisdom, push boundaries of what’s possible and thrive to helping others achieve their highest levels of performance.

People are at the center of the Mecene’s philosophy. We seek to achieve high triple bottom line returns by backing outstanding management teams of high growth companies in selected industries in Africa. We thrive to create value by building strong relationships with local management teams and shareholders, and by actively participating to the definition of the company’s strategic direction and governance. We also believe in fostering exchanges among companies within our portfolio.

In line with our vision, we believe that the African entrepreneur needs a range of services that are seldom available due to the complexities of transacting with the informal sector. We are certain, that when those services are made available in an environmentally friendly manner, businesses thrive, jobs are created and communities grow stronger.

ABOUT AFRICAP

AfriCap is a $50 million African Microfinance Investment Company established in Mauritius. Mecene Investment, a South African Advisory Company with headquarters in Johannesburg, manages the company.

Founded in 2001 by Development Finance Institution and Microfinance NGOs, including the International Finance Corporation (IFC), Netherlands Development Finance Corporation (FMO), The European Investment Bank, Accion and Calmeadow, the Fund provides equity capital and technical assistance to leading African MFIs.

In October 2007, the Fund transformed into an Investment Company and raised its capital from $14 million to $50 million.

AfriCap shareholders include Accion International, AfriCap Sweden, BIO, Calmeadow, Calvert, Cordaid, DOEN Foundation, European Investment Bank, FMO, Hivos-Triodos, IFC, Nordic Microcap, Gray Ghost Investment Fund, Norfund, SwedFund, FinFund, Blue Orchard Private Equity Fund.

Operating similarly to the venture capital model, AfriCap offers an integrated investment package. The Company invests in equity and quasi-equity instruments, while providing management advice governance and technical assistance. The adjoined Technical Services Facility (TSF), Fintech Africa, gives the financial means for building capacity within portfolio companies and for creating an enabling environment for broader access to finance.

The Company’s Investment Strategy is to invest over five years in a 15 to 20 leading MFIs across Africa, which have the potential to become demonstration models of successful microfinance. These investments will not only be attractive on their own merits, but will also support a broader objective, that of helping to legitimize the emerging microfinance industry. AfriCap invests exclusively in institutions dedicated to microfinance or small business lending, and as such brings a specialist expertise and focus to the management of each investment and to the development of the portfolio as a whole.

To date the Company has invested in the following institutions: Access Bank – Madagascar, CAP Microfinance- Senegal, Opportunity International Malawi, Equity Bank – Kenya, Quality Finance International- Egypt, Socremo Banco – Mozambique, Susu Microfinance Bank- Nigeria, Union Trust Bank – Sierra Leone, Women’s World Banking – Ghana, Wizitt Bank- South Africa, Ferlo- Senegal.

www.africapfund.com