The CDC Group and Finnfund have made a $70-million commitment to AfricInvest Fund IV, a generalist Pan-African fund aiming to foster the growth of African enterprises across the continent.
Fund IV will invest in mid-cap and growth-oriented companies in sectors including financial services, agribusiness, logistics, manufacturing, healthcare and education.
CDC, the UK’s impact investor and development finance institution, committed $50-million and Finnfund, the Finnish development financier, committed $20-million.
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.
CDC and Finnfund’s investments strengthen their long-standing relationships with AfricInvest and anchor the fund’s first close at $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.
AfricInvest is committed to the management of environmental and social risks, as well as environmental, social and governance integration throughout its investment decision-making process.
CDC and Finnfund’s commitments will contribute to the UN’s Sustainable Development Goals, particularly Goal 8 on Decent Work and Economic Growth.