Case Study—FONSIS: Pursuing a Triple Bottom Line of Economic Impact, Financial Returns, and Private Capital Mobilization
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TABLE 9.1
FONSIS projects approved from inception in 2013 to the time of writing
PROJECT
SECTOR
FONSIS EQUITY STAKE (%)
Biosoy
Agriculture
FONSIS SAED
Financial services
100
Fund launched by FONSIS in partnership with SAED (a local development agency), targeting agri-business SMEs in northern Senegal
Jambaar Immo
Infrastructure (real estate)
100
Newly established company in charge of redeveloping real estate assets (total project cost: US$64 million)
MF Touba
Health care
—
Construction and equipment of a five-floor building within Mathlaboul Fawzani National Hospital of Touba, in order to house its new medical platforms
Parenterus
Pharmaceuticals
23
Newly established, Senegal-based provider of intravenous solutions, with FONSIS contributing as a minority shareholder to the CFAF 9 billion (US$16 million) investment cost, together with the company’s promoter and other local investors
Polimed
Health care
Scaling Solar Senegal
Energy
20
Construction and operation of two solar plants with a cumulative nominal capacity of 60 MW in co-investment with Meridiam and ENGIE Development
Senergy
Energy
15
30 MW solar project; co-investment with Meridiam infrastructure fund
SIAA
Infrastructure
49
Development and management of special economic zones in Senegal
SOGENAS
Livestock
100
Newly established company launching high-productivity livestock in Senegal and developing dairy value chain; project solicited by the Ministry of Livestock and Animal Production in line with the sector priorities of the PSE
Solarys
Energy
100
Construction and operation of photovoltaic solar power plants for self-consumption (coupled with energy storage units) with a cumulative capacity of 17 MW (peak), on behalf of the National Water Company of Senegal
Ten Merina
Energy
10
30 MW solar project; co-investment with Meridiam
Teranga Capital
Financial services
22
SME-focused private equity fund, externally managed
37
100
DESCRIPTION
2,000-hectare farm
Medical imaging facility within the Mbour Public Health Center
Source: Information provided by FONSIS management. Note: CFAF = West African CFA franc; FONSIS = Fonds Souverain d’Investissements Stratégiques (Sovereign Fund for Strategic Investments); MW = megawatt; PSE = Plan Sénégal Emergent; SAED = Société Nationale d’Aménagement et d’Exploitation des Terres du Delta du fleuve Sénégal et des vallées du fleuve Sénégal et de la Falémé (National Society for the Development and Exploitation of the land of the Senegal River Delta); SME = small and medium enterprise; — = not available.
ADDITIONALITY AND MULTIPLIER CONSIDERATIONS FONSIS aims to deliver additionality and to avoid crowding out other sources of private capital in several ways. • As a project developer or codeveloper. In this role FONSIS prioritizes greenfield projects and gets involved well before any other source of commercial capital. Through its preparation work, it opens the door for the subsequent entry of investors and lenders. For example, FONSIS mentioned its launch of a livestock company focused on introducing new breeds to Senegal; FONSIS at the time of writing was the only shareholder in this novel business and had budgeted five years of development work before the company is ready for
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