European Investment Bank (EIB Global) has invested €25 million into Amethis Fund III in order to fund African businesses. Amethis Fund III is a pan-African fund providing private equity growth capital to medium sized companies on the continent.
Amethis Fund III will target companies supplying goods and services to low and middle-income populations in Africa. The target sectors include healthcare, business services such as logistics & IT, manufacturing and distribution including agribusiness and fast-moving consumer goods, non-banking financial services, and services related to infrastructure and energy.
The fund’s strategy is aligned with EIB Global’s investment goals as well as the EU’s Global Gateway strategy by supporting economic development in a diversity of geographies, notably sub-Saharan countries. The fund will pursue an impact-driven strategy developed by Amethis to address critical issues for the continent’s sustainable development, by focusing on gender equality, sustainable employment, with a particular emphasis on health coverage, and climate considerations.
EIB Vice President, Thomas Ostros commented on the deal: “The EIB is happy to support Amethis in its effort to invest in small companies in low- and middle-income countries across Africa. We see Africa as a close and important partner to the Bank, which has a lot of potential and untapped opportunities. However, African enterprises still don’t have enough patient equity capital they need for them to grow, which is what our partnership with funds like Amethis seek to address.”
“Private capital is a powerful driver of economic development in Africa. Private equity funds, through investment in local enterprises, are playing a catalytic role by bringing external funding as well as knowledge and technical expertise to the companies they invest in,” he added.
Luc Rigouzzo and Laurent Demey, Managing Partners at Amethis said, “We are proud to receive the renewed support from the European Investment Bank. Building upon our prior collaborations, its strategic support will allow us to continue helping medium-sized companies deliver better good and services to the African consumers and to become African champions by promoting their regional integration and sustainable economic growth.”
The EIB has invested nearly €3 billion in equity funds in Africa. Some of these funds are country-specific, while some have a regional focus. Amethis has supported the growth of more than 30 African companies employing directly more than 40,000 people.
Amethis has an on the ground presence in four African capitals of Nairobi, Abidjan, Casablanca and Cairo.