Arthur COULIBALY, Managing Director of CDC-CI Capital
For a long time, the financing of African companies relied almost exclusively on bank credit, leaving many PME, start-ups, and growing companies facing a chronic deficit in equity capital. Created by the Caisse des Dépôts et Consignations de Côte d'Ivoire, CDC-CI Capital intends to address this market failure by intervening as a long-term investor in the capital of high-potential companies, with the ambition of bringing forth future national champions.
In this interview, its Managing Director, Arthur Coulibaly, reviews the philosophy of this investment vehicle, its positioning within the Ivorian financial ecosystem, and his vision of private equity in service of the country's economic transformation.
Why did the CDC-CI consider it necessary to create a dedicated investment vehicle such as CDC-CI Capital rather than intervening directly from the parent company?
The creation of CDC-CI Capital is part of the implementation of the Project for Competitive Value Chains for Employment and Economic Transformation (PCCET), financed by the World Bank (this is a World Bank loan to the State of Côte d'Ivoire for the implementation of the project). More specifically, the 2.2 component of the project provided for the establishment of a Long-Term Investment Facility (FILT) intended to strengthen the access of Ivorian companies to financing adapted to their growth needs.
In this context, it appeared relevant to create a dedicated investment vehicle rather than intervening directly from the parent company. This structuring would allow the facility to be equipped with a specialized intervention framework, entirely devoted to investments in equity and quasi-equity, while ensuring it a strong institutional anchorage through the CDC-CI.
CDC-CI Capital was thus constituted as a subsidiary 100% owned by the CDC-CI, with the mission of financing innovative start-ups, PME with high growth potential, as well as companies engaged in structuring projects, particularly in priority sectors and green investments. This architecture makes it possible to reconcile the mission of general interest carried by the CDC-CI with the management and investment requirements inherent to private equity.
CDC-CI Capital defines itself as a public initiative with private management. In what way does this architecture constitute an advantage in your investment activities?
The "public structure with private management" model allows us to combine the best of both approaches. On one hand, CDC-CI Capital benefits from a strong institutional anchorage through the CDC-CI, which allows it to align its interventions with the government's economic development priorities.
Our investments thus contribute to the financing of strategic sectors, job creation, the emergence of national champions, and support for high-growth potential companies.
On the other hand, private management allows us to apply the standards and practices of private equity, with analysis, selection, and monitoring processes adapted to market requirements. This approach promotes responsiveness in decision-making, rigor in risk assessment, and the pursuit of financial performance while maintaining a lasting economic impact.
Finally, this architecture allows us to play a catalytic role in the development of the private equity industry in Côte d'Ivoire. Historically, public interventions have mainly taken the form of debt financing.
Through CDC-CI Capital, we contribute to promoting equity and quasi-equity financing as tools for business development. This model also allows public institutions to mobilize resources and invest them through a specialized vehicle.
This is notably the case for the Agence Emploi Jeunes, which chose to rely on CDC-CI Capital to support the financing and growth of startups within the framework of the support program for the startup ecosystem.
Three years after launch, what assessment can you make of your action?
Three years after its launch, CDC-CI Capital displays an encouraging track record, marked both by the implementation of its investment activities and by its commitment to the development of the Ivorian entrepreneurial ecosystem.
During this period, we conducted significant prospecting work with the various actors of the ecosystem, including companies, investment funds, and financial institutions. This approach allowed us to identify and analyze numerous investment opportunities, several of which led to concrete operations.
To date,