British International Investment

Neoma Africa Fund III

GhanaKenyaNigeriaSouth AfricaAfricaCommunications & IT servicesConsumer - HealthConsumer - other servicesFinancial servicesManufacturing

The Neoma Africa Fund III focuses on well-managed, mid-market leaders in sectors set to benefit from demand driven by the rapid expansion of a young, urban, middle class across sub-Saharan Africa.

These sectors include consumer goods and services, consumer finance, and resource and infrastructure services in the core geographies of Nigeria, Ghana, Cote d’Ivoire, South Africa and Kenya.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

In 2014, CDC invested $50 million into Neoma Africa Fund III, alongside Dutch DFI FMO and private investors.

The fund closed at a total size of $990 million.

Our investment provides growth capital for mid-market enterprises in key territories.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

Africa’s momentum for growth continues, as the continent’s economies continue to diversify away from resources and focus on the potential offered by increasing urbanisation and a growing class of young consumers.

Our investment enables the fund manager to tap into this expanding appetite for goods and services. It will also help attract commercial capital to the region.

The fund manager also provides strategic and managerial assistance for its investee companies, helping local African businesses to expand across the region.

Success stories include cornerstone investments in Liberty Star Consumer Holdings (one of South Africa's leading FMCG manufacturers), Java House (a Nairobi-based coffee chain), and Joint Medical Holdings (a hospital group in South Africa).

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

The fund manager has a well-established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D48
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Consumer - Health, Consumer - other services, Financial services, Manufacturing

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    June 2015
    Amount :
    $50m
    Currency of investment :
    USD
    Fund Manager:
    Actis LLP
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Cayman Islands

Investments made by this fund into companies:

For further information about these companies, visit https://www.act.is/

Investment name Country Region Sector Start date Status
Ghana Home Loans Ghana West Africa Financial services December 2016 Exited
Indorama Eleme Fertilizer & Chemicals Limited Nigeria West Africa Manufacturing October 2016 Exited
Joint Medical Holdings (Pty) Limited South Africa Southern Africa Consumer - Health January 2018 Exited
Libstar South Africa Southern Africa Consumer - other services May 2015 Active
Mouka Limited Nigeria West Africa Manufacturing June 2015 Exited
Nairobi Java House Limited Kenya East Africa Consumer - other services September 2017 Active
Octotel (Pty) Ltd South Africa Southern Africa Communications & IT services December 2020 Active

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