XSML, the fund manager active in Central & East Africa, announced its investment in Monishop sarl (Monishop), a well-known supermarket in Kinshasa, DRC. Since inception Monishop has grown to become the leading supermarket in Kinshasa in terms of product offering and overall store experience, with bank, fast-food and pharmacy facilities on the same premises. The investment supports Monishop to build a new large supermarket in the center of Kinshasa.
Monishop was founded in 2011 and currently has its main operation in the Kintambo area of Kinshasa. The Managing Director of Monishop, Toussaint Ndombasi: “The African Rivers Fund has provided us with the necessary funding to start a large scale construction project for a new supermarket in a prime area of Kinshasa. We are excited to embark on this project, which will help Monishop in the next stage of its growth.”
Marcel Posthuma, Managing Partner at XSML says: “Today, Kinshasa is Africa’s third most populous city with over 12 million inhabitants and with high growth expectations in the next decades. This will drive retail demand in the medium to long term. With excellent locations and management, Monishop is very well positioned to capture part of this growth.”
Monishop, is one of ARFs fifteen investments since first close of the fund in February 2016. The African Rivers Fund (ARF) is XSMLs second fund, after having fully invested its maiden fund, the Central Africa SME Fund (CASF) in the period 2012-2015. As its predecessor, ARF targets growing, well-managed small and medium-sized enterprises (SMEs) in the Central & East African region covering Democratic Republic of Congo (DRC), Uganda and Republic of Congo as well as - over time - Burundi. The fund is named after the two most powerful rivers in Africa, the Congo and Nile rivers, which embody the potential of the Central & East African region.
XSML believes that sustainable economic development in fast growing markets as the DRC and Uganda can be achieved by encouraging local entrepreneurship. Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support. By stimulating entrepreneurship, jobs and income are created. The African Rivers Fund continues CASF’s strategy with investments in between US$100,000 and US$5mn. Between the two funds XSML has provided technical assistance to some 28 companies to help them improve their operations and skills. Evidence of further impact can be found in various fields, with over 500 jobs created since 2011, over 4,000 additional pupils spread over three private schools and the addition of some 40 hospital beds, an operating theatre and maternity rooms in a clinic in Kinshasa, improving healthcare standards. All three investors in CASF (IFC, FMO and Lundin) were joined by Bio, CDC, DGGF, and Proparco for ARF.
Monishop is a supermarket, founded by the Ndombasi couple in 2011.
Although international investors show an increasing interest in emerging markets, the demand for finance from small and medium sized enterprises (SMEs) remains largely untapped.
XSML, eXtra Small Medium Large, founded in 2008, bridges this gap by investing in small businesses to help them grow into medium and large enterprises. XSML manages two funds with a focus on frontier markets in Central and East Africa: the Central Africa SME Fund and the African Rivers Fund. Local teams of 14 investment and operating professionals have experience in emerging and frontier markets in private equity, corporate and development banking and corporate restructuring with offices in Kinshasa (DRC), Kampala (Uganda) and Bangui (CAR).
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