Today, XSML, the fund manager active in Central Africa, announced its investment in SODEP, a Kinshasa based fuel-distribution company. Société Equatoriale de Pétrole (SODEP) is a company that was established in 2006 to transport and distribute fuel in DRC. SODEP procures fuel in Muanda and transports and distributes it by tanker to businesses in Boma, Matadi and Kinshasa. SODEP also owns and operates a fuel station in Muanda and a filling pomp in Limete on 5th street.
Kinshasa, Democratic Republic of Congo
XSML’s financing is used to invest in new filling stations in Matadi and Boma and will also be used to increase working capital in order to properly supply increasing demand from corporate customers.
SODEP’s Managing Director, Mr Benjamin Amato states: “With the long term financing provided by the Central Africa SME Fund, SODEP is now able to expand its working capital serving more customers as well as build additional petrol stations in Bas-Congo.”
Marcel Posthuma, Managing Partner at XSML says: “With our investment we are able to provide more SMEs and large businesses with long term supply of petrol products at a better price. Demand has been there from businesses but SODEP has not been able to capture that growth due to lack of long-term finance.”
SODEP is the twentieth investment made by CASF and its seventeenth investment in DRC. CASF is an investment fund investing in small and medium-sized enterprises in the Democratic Republic of Congo and the Central African Republic. The fund is based on the belief that sustainable economic development in the fast growing markets of DRC and CAR can be achieved by encouraging entrepreneurship. Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support. By stimulating entrepreneurial endeavors jobs and income are created. CASF is a USD 19m fund with 80% allocation to DRC and 20% in CAR. CASF provides risk capital with an investment size ranging from USD 100,000 to a maximum of USD 500,000. Investors in CASF are IFC, FMO and the Lundin Foundation.
SODEP is a Congolese fuel distribution company based in Limite, Kinshasa. SODEP distributes fuel for corporate as well as small and medium-sized business in DRC, in particular in Kinshasa and Bas-Congo.
XSML is an independent private equity fund manager, founded in 2008, with a focus on frontier markets. While building and managing funds for these markets, XSML, eXtra Small Medium Large, helps to grow small businesses into medium and large enterprises. The managing partners have an extensive background in emerging markets in the areas of asset management, corporate and development banking and corporate restructuring. Our experience has shown that demand for finance from small and medium sized enterprises (SMEs) remains largely untapped despite increased interest in frontier markets from international investors. XSML bridges the gap between international investors and SMEs in these markets. XSML is currently fund-raising its second fund: the African Rivers Fund.