We invested in the fund alongside Finnfund, the Finnish development finance institution, strengthening our long-standing relationships with AfricInvest and anchoring the fund’s first close at $202 million. The commitments were made at a particularly challenging time given the context of COVID and will enable AfricInvest to invest in promising, growth-oriented companies, creating up to 2,500 jobs across the continent.
Support and create economic opportunities (SDG 8.5).
Direct: Providing primarily growth capital and value add to 8 to 12 mid-cap businesses resulting in business growth, improved productivity and employment creation.
Catalysing markets: Our countercyclical commitment will improve the fund manager’s chances of weathering the COVID-19 crisis and sustaining an important channel for equity investment across some of the largest economies in sub-Saharan Africa (beyond South Africa) post crisis to support businesses to recover. If the fund succeeds at generating returns that are attractive to commercial investors, it can position the fund manager to mobilise additional capital in the medium-long term. Success will be signaled by growth of investees (short term). In the medium term we would expect to see attractive commercial returns and as markets recover from the COVID-19 crisis, the raise of a larger fund with increased commercial investor presence.
Pan Africa – primarily East Africa (c. 45 per cent), but also West Africa (c. 22 per cent), Southern Africa (c. 18 per cent), and North Africa (c. 15 per cent).
Variable. Likely to be low and medium-skilled employees in sectors such as manufacturing and retail, and higher-skilled in financial services and healthcare.
Market context: The fund will invest in relatively more sophisticated African private equity markets, yet in the context of significantly reduced supply of capital expected across the board, including for mid and large-cap companies.
To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.
Environmental and social aspects
We are working closely with the fund manager to improve its existing environmental and social management system (ESMS), including delivering an action plan.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Intermediated investment
- Fund manager:
For direct investments, this is the total amount that British International Investment has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that British International Investment has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.
Investments made by this fund
|Investment name||Country||Region||Sector||Start date||Status|
Fidelity Bank is one of the leading banks in Ghana, with a network of 45 branches and more than 1500 employees.
|Ghana||Africa, West Africa||Financial services||October 2020||Active|