Amethis Fund III, a pan-African fund that offers private equity growth capital to medium-sized businesses on the continent, has received a €25 million investment from the European Investment Bank’s EIB Global division.
Companies that provide goods and services to low- and middle-income populations in Africa will be the focus of Amethis Fund III. The target industries include the healthcare industry, manufacturing and distribution, including fast-moving consumer products and agribusiness, non-banking financial services, infrastructure and energy-related services, and business services like IT and logistics.
The fund’s approach, which supports economic development across a number of regions, particularly sub-Saharan nations, is in line with the investment aims of EIB Global and the European Union’s Global Gateway initiative. The fund will follow an impact-driven plan created by Amethis to address key concerns for the sustainable development of the continent, with a focus on climate considerations, gender equality, and sustainable employment, with a special emphasis on health coverage.
Commenting on the deal, EIB Vice-President Thomas Östros said: “The EIB is happy to support Amethis in its efforts 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 the patient equity capital they need for them to grow, which is what our partnership with funds like Amethis seeks 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 renewed support from the European Investment Bank. Building upon our prior collaborations, its strategic support will enable us to continue helping medium-sized companies deliver better goods and services to African consumers and to become African champions by promoting regional integration and sustainable economic growth.”
With an emphasis on Africa, the EIB has made equity fund investments totaling around €3 billion. While some of these funds focus on a particular nation, others are more regionally oriented. Due to the Bank’s best market practices on environmental, social, and governance requirements, the EIB’s early investment has had a catalytic effect in luring other investors to funds, assuring maximum impact at the level of portfolio firms.
In the twelve years since its founding, Amethis has directly employed over forty thousand people by fostering the expansion of over thirty African businesses. In addition to fostering the growth of a superior economy, these businesses are advancing significant Sustainable Development Goals for the continent.
Amethis gains from having a significant local presence in each of the four African capitals—Nairobi, Abidjan, Casablanca, and Cairo—which facilitates the discovery of fresh prospects and the tracking of the market’s development in each nation. Additionally, it helps Amethis establish a reputation as a reliable partner for businesses expanding, with an emphasis on impact and value generation.
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