Mobilizing diaspora resources into an impact investment fund in Mali

IFAD and I&P partnered to launch this project aimed at mobilizing the Malian diaspora resources into a local Malian impact investment fund supported by I&P: Zira Capital. I&P has identified, trained and supported a core group of potential Malian diaspora investors in France. With the technical support of I&P and legal advisory brought by the project, diaspora investors created a company, Ciwara Capital, to pool their capital in France to be invested in Malian SMEs and start-ups. Ciwara Capital will invest through Zira Capital, and, on the long term, envisions direct investment into SMEs.
Budget:
  • Financed: EUR 230,000
  • Co-Financed: EUR 15,000
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Duration: 2019 ~ 2023


Project Category Diaspora Investment
Rural Development
Target Groups:
  • SMEs generating jobs and spillover effects on agricultural value chains in Mali and Malian diaspora in France
Programme
FFR Strategic Framework
Mali Diaspora investment

Project Goals

To mobilize Malian diaspora investment towards economic development, entrepreneurship and employment in Mali, particularly in rural areas.

Implementing Partners

Investisseurs & Partenaires (I&P) is a pioneer group of impact investment in Africa. Based in France, I&P has raised over EUR 400 million and supported more than 200 companies in 10 African countries. I&P is the manager of 22 dedicated funds to match the different needs of small- and medium-sized enterprises (SMEs). I&P supports the creation of local impact investment funds. I&P takes minority shares but plays the role of a sponsor fund in those local funds, along with local investors. In Mali, the local fund sponsored by I&P, named Zira Capital, has started operating in 2022. It finances SMEs and start-ups with strong growth potential, with needs ranging between EUR 30,000 and EUR 300,000.

Geographic Target

Mali

Outcomes

  • Driven by members of the diaspora, Ciwara Capital, a diaspora-owned private equity company, was established in July 2022.
  • In December 2022, Ciwara Capital invested in Zira Capital, the local fund sponsored by I&P. And throughout 2023, it gradually set up its management structure and procedures to attract new investors and identify projects for direct investment. Ciwara Capital participated as a shareholder in Zira Capital's investment decision-making committees.
  • By the end of 2023, the funds raised by Ciwara from the diaspora slightly exceeded the target of € 200,000, and the anticipated integration of new shareholders is expected to increase the capital by the end of 2024.
  • In December 2023, Zira's investment committee approved the first investment in a group of private vocational schools, which was disbursed in February 2024, following the necessary administrative procedures. At the same time, Ciwara made its first direct investment in an African telecom SME.
  • The second investment, in a rice processing company, has been approved by Zira’s investment committee during summer 2024.
  • In December 2024, IFAD, IPEV and Ciwara released a white paper on mobilizing diaspora for capital investment to foster cooperation between diaspora, professional investors and donors. In 2023, they already produced a practical guide on private equity to familiarize potential investors with the theoretical basics of diaspora investment mechanisms.

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