CDC Group and Finnfund commit US$70m to AfricInvest to support growth of enterprises

AFRICA – CDC Group and Finnfund have announced a US$70 million commitment to AfricInvest Fund IV, a generalist pan-African fund aiming to foster the growth of African enterprises across the continent.

CDC, the UK’s impact investor and development finance institution, committed US$50 million and Finnfund, the Finnish development financier, committed US$ 20 million.

“CDC’s countercyclical commitment will improve AfricInvest’s chances of weathering the COVID-19 crisis and enable the firm to continue investing and generating transformational impact across the African continent,” Clarisa De Franco, Managing Director, Head of Africa Funds, Funds and Capital Partnerships, commented.

With offices in cities such as Abidjan, Cairo, Casablanca, Lagos, Nairobi and Tunis, AfricInvest has one of the most comprehensive track records in African private equity, having made over 160 investments in 25 African countries through several funds.

Fund IV will invest in mid-cap and growth-oriented companies in sectors including financial services, agribusiness, logistics, manufacturing, healthcare, and education.

CDC and Finnfund’s investments strengthen their long-standing relationships with AfricInvest and anchor the fund’s first close at US$202 million. These commitments come at a particularly challenging time and will enable AfricInvest to invest in promising, growth-oriented companies, creating up to 2,500 jobs across the continent.

“Particularly now, in the midst of the COVID-19 pandemic, it is important to generate financing for African companies. As a development financier, we aim to foster the development and growth of responsible, innovative businesses which can create employment and, through their operations, generate positive impacts in wider society,” Riikka Molander, Associate Director, Finnfund, said.

AfricInvest is committed to the management of Environmental and Social (E&S) risks, as well as Environmental, Social and Governance (ESG) integration throughout its investment decision-making process. CDC and Finnfund have worked closely with AfricInvest on ESG and have supported the firm in expanding its E&S team.

CDC and Finnfund’s commitments will contribute to the UN’s Sustainable Development Goals, particularly Goal 8 on Decent Work and Economic Growth.

AfricInvest was founded in 1994 and is today among the leading private equity firms in North and Sub-Saharan Africa, having raised US$1.7 billion in its 26-year history.

With 19 funds across four strategies, AfricInvest is sponsored by prestigious DFIs, private and institutional investors from Africa, Asia, Europe and North America.

AfricInvest funds have dedicated teams covering the African continent and France for growth capital and LBO transactions related to small, mid and large cap companies, financial sector institutions and venture capital.

AfricInvest has also a dedicated team providing private debt to SMEs in Africa. AfricInvest relies on a team of 80 highly skilled investment professionals, representing 19 nationalities, operating out of ten offices in Abidjan, Algiers, Cairo, Casablanca, Dubai, Lagos, Nairobi, Paris and Port Louis, Tunis.

AfricInvest is a co-founder of the African Private Equity and Venture Capital Association (AVCA), and the Emerging Markets Private Equity Association (EMPEA) as well as different PE country and regional associations in Africa and in France.

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