XSML Capital, a Dutch private equity fund manager focused on opportunities in Central Africa announced yet another investment for the recently closed $50 million African Rivers Fund last week, this time taking an undisclosed stake in Monishop, a well-known supermarket in Kinshasa. The capital will be used to fund the development of a large, new supermarket in the centre of the city.
With 12 million inhabitants, Kinshasa is already the third largest city of the continent. That fact, combined with the expectation that population growth in the coming decades will continue to be strong is a major driver of the deal for XSML. “This will drive retail demand in the medium to long term,” said XSML’s Managing Partner, Marcel Posthuma. “With excellent locations and management, Monishop is very well positioned to capture part of this growth.”
The Ndombasi family founded Monishop in 2011, since when it has become one of Kinshasa’s leading retail stores, offering customers a broad range of food and household products as well as banking, pharmacy and fast-food facilities on site. The store currently has its main area of operation in the Kintambo area of Kinshasa.
Monishop is African Rivers Fund’s fifteenth investment since it held its first close in May 2016. The fund follows much the same strategy as its $19 million predecessor fund and typically backs well-managed, growing small and medium businesses in the Democratic Republic of Congo, Uganda, Congo and eventually Burundi with debt, equity or mezzanine capital in deals ranging from $100,000 to $5 million in size.