XSML via its African Rivers Fund (ARF) has invested an undisclosed amount in B.I.S., a Congolese manufacturer of generic pharmaceutical products.

Barthout van Slingelandt, Managing Partner of XSML, told Africa Global Funds, that "it was a loan as schools in DRC do not issue share capital".

For over 20 years, B.I.S. has been producing and marketing tested solutions to prevent and cure infections to ears, eyes and throat, for the local market.

While DRC shows a steady increase in purchasing power, and demand for affordable pharmaceutical products of good quality is increasing, the pharmaceutical market in DRC is still underdeveloped, lacking investment and heavily reliant on imports.

Jarl Heijstee, Managing Partner at XSML said: “We are excited to do our part in further developing the pharmaceutical sector in Congo, by investing in BIS’ improvement of its infrastructure. It will enable the company to further scale its production, gaining further reach with its products in DRC. Our outlook for the sector for the years to come is very positive and this is an opportunity to be part of that.”

As one of the few local manufacturers, B.I.S. has been able to cement a strong brand-name for its specialized products, and is now aiming for its next stage of growth.

Jeremie Lubiba, MD of B.I.S., said: “B.I.S. has developed itself from scratch to an established business in the last two decades and we are proud of our current position in the market, with well-recognized locally manufactured products, which have helped a great number of people. Our aim is to grow further and for that we need to improve our operations and deal with bottle necks”.

This is the second investment by the African Rivers Fund (ARF).

Last week XSML has announced about its first investment in Institut Aurora, an education provider in the Democratic Republic of the Congo.

ARF targets growing, well-managed small and medium-sized enterprises (SMEs) in the Central and East-African region covering Democratic Republic of Congo (DRC), Uganda and Republic of Congo as well as Burundi and Central African Republic (CAR).

ARF targets growing, well-managed small and medium-sized enterprises (SMEs) in the Central and East-African region covering Democratic Republic of Congo, Uganda and Republic of Congo as well as Burundi and Central African Republic (CAR).

The fund, which had its first close at $50m in Q1, 2016, follows the successful investment strategy of its predecessor, the Central Africa SME Fund (CASF), by providing debt, equity and mezzanine finance to fast-growing companies in the Central African region.

The African Rivers Fund continues CASF’s strategy with investments in between $200,000 and $5m.