CDC Group and Finnfund have announced a $70m 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 $50m and Finnfund, the Finnish development financier, committed $20m.

Riikka Molander, Associate Director, Finnfund, said: “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.”

CDC and Finnfund’s investments strengthen their long-standing relationships with AfricInvest and anchor the fund’s first close at $202m.

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.

Clarisa De Franco, Managing Director, Africa Funds, Funds and Capital Partnerships, said: “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.”

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

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. 

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.