The decision to back AEF 1 underscores the Bank’s commitment to bolstering growth-oriented enterprises across the continent.

Through this funding, Adenia Entrepreneurial Fund 1 will supply growth capital to small and mid-sized companies operating in a range of sectors vital for Africa’s economic resilience — from light industry, consumer goods and services, renewable energy, health, to education.

The capital injection is expected to enable these firms to scale operations, contributing toward broader development outcomes.

According to Ousmane Fall, acting director of AfDB’s industrial and trade development department, by focusing on small- to mid-cap firms, AEF 1 will foster inclusive growth.

As these businesses expand, they are likely to improve access to finance for underserved firms and create sustainable employment.

Moreover, because many of the target firms operate across regional markets, the fund may help deepen regional integration by backing companies that scale beyond their domestic markets.

The investment aligns with the Bank’s long-standing strategy of deploying private equity as a development lever across Africa.

Over the past two decades, AfDB has used equity and quasi-equity investments, often through private equity funds, to help bridge the financing gap faced by growing African enterprises, and to complement its broader private-sector and infrastructure initiatives.

By putting its AAA-rated balance sheet behind such funds, the African Development Bank hopes to mobilise additional private capital toward companies that can drive industrialization, create jobs, and support sustainable growth across the continent.