FONSIS invests in equity and quasi-equity in projects with high potential for economic growth and job creation and wealth creation.Projects can vary in size, ranging from PME to large, large-scale structuring projects. Indeed, under the 2012-34 law establishing its creation, FONSIS is required to dedicate up to 20% of its resources to an investment capital fund dedicated to Senegalese SMEs.
FONSIS invests mainly in the strategic sectors defined in the Senegal Emergent Plan (PSE), namely:
- Fishing products
- logistics and industrial hubs
- social housing
- services: IT, education, health, business park and tourism
Unlike private equity funds that require internal rates of return (IRR) of 20-25%, FONSIS invests in projects that enable it to achieve a net minimum IRR of 12%.As part of its investment strategy, FONSIS is expected to play three main roles:
- «FONSIS Developer» : development of strategic projects and search for partners by call for expressions of interest.
- «FONSIS Co-investor» : taking a stake in projects received on spontaneous proposals from entrepreneurs, investors, or technical and financial partners.
- « FONSIS Restructuring» : restructuring of state-owned enterprises or the private sector.
FONSIS supports project owners on a defined investment horizon ahead of capital entry. Depending on the project and areas of intervention, it can range from five (5) to twelve (12) years.
- transfer to project proponents transfer to another project partner or third party (by promoting the development of the national private sector)distribution of special dividends by raising debt IPO
FONSIS does not invest in companies that produce, stockpile, or trade in antipersonnel land mines and cluster bombs. It thereby demonstrates its compliance with the Ottawa and Oslo Conventions to which Senegal is a signatory.
Also excluded are from its investments businesses related to production or trade in alcoholic beverages and tobacco.
FONSIS does not invest in companies whose activities are deemed to be inconsistent with the basic ethical standards (human rights violations, serious environmental harms, etc.).