African private equity firm, DPI to buy CMGP for $100 million

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Development Partners International (DPI), an African private equity firm, bought a majority stake in Moroccan irrigation company, Compagnie Marocaine de Goutte a goutte et de Pompage (CMGP) for about a $100 million. According to World Bank,  Morocco has more than two thirds of agricultural land but irrigation is only practiced on 16 percent of the territory.

Sofiane Lahmar, DPI Partner said “there is considerable potential for expansion in irrigation across the African continent and we look forward to working with the company on a number of strategic initiatives to address this”. The Emerging Market Private Equity Association notes that so far in 2018, the transaction is the biggest private equity deal in Morocco.

DPI,  a $1.1 billion Africa-focused private equity firm, bought the stake from the Moamah family, who established the company in 1995. The firm also bought a stake from private equity firm Amethis.

The private equity firm, which invests in companies benefitting from the fast growing emerging middle class in Africa also invested in UPM, a university situated in Morocco.

Morocco is implementing strategies to make the economy more resilient. The success of the reform is the key to the country’s ambition of becoming the financial hub in Africa.

Although the dirham has been stable, the economy has been plagued by rising oil prices and a boycott campaign against three of the biggest brands in the country. One of the brands is French dairy maker Danone.

PricewaterhouseCoopers and Naciri & Associes Allen & Overy advised DPI on the transaction.


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