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’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,” CDC’s managing director for Africa funds, and funds and capital partnerships, Clarisa De Franco, said in a statement.
Here Is What You Need To Know
- CDC, the UK’s impact investor and development finance institution, committed $50-million and Finnfund, the Finnish development financier, committed $20-million.
- AfricInvest Fund IV is aimed at general African enterprise growth through investing in mid-cap and growth-focused financial services, agribusiness, logistics, manufacturing, health and educational businesses, and will receive USD 50 million from CDC and USD 20 million from Finnfund, bringing its total first close to USD 202 million. AfricInvest said the investments would produce 2,500 new jobs.
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“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,” Finnfund associate director Riikka Molander said.
- 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.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.