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