Summit Africa, a South African fund manager, has launched its second private equity fund, Summit Private Equity Fund II (SPEF II), with an initial $20 million anchor investment from British International Investment (BII), the UK’s development finance institution and impact investor.
SPEF II aims to support small-to-mid-sized businesses in the financial services and ICT sectors, focusing on financial and digital inclusion, job creation, and diversity across South Africa and the broader Southern African region.
The fund will also extend its investments into the food security sector, addressing critical economic and social needs.
In addition to BII’s contribution, Summit Africa is working to raise between ZAR400 million ($21.7 million) and ZAR500 million ($27.2 million) from other institutional investors, both local and international, before deploying capital.
The fund has set a target size of ZAR2.5 billion ($136 million).
Highlighting the significance of this investment, BII CEO Leslie Maasdorp stated:
“Partnering with impact-driven fund managers like Summit Africa is crucial for delivering development outcomes at scale. Given the success of Summit’s first fund, we are pleased to support its second private equity initiative to drive SME growth in key sectors that enhance livelihoods in South Africa and the region.”
Nthabiseng Thema, investment lead and partner at Summit Africa, expressed appreciation for BII’s backing, emphasizing the fund’s commitment to environmental, social, and governance (ESG) principles and its hands-on approach in working with portfolio companies.
She also noted that the investment aligns with South Africa’s Presidential Investment Drive, which seeks to mobilize R2 trillion in investments over the next five years.
The launch of SPEF II marks another step in strengthening private equity investment in Southern Africa, with a clear focus on economic transformation and sustainable impact.
“We are delighted to partner with ISA to support the development of solar energy in Africa,” said Alain Ebobissé, CEO of Africa50. “This partnership will help to accelerate the deployment of solar energy in Africa and improve the lives of millions of Africans,” he added.
Kenyan electric mobility company Roam is gearing up to launch 10 additional solar-powered Roam Hubs in Nairobi, supported by funding from ENERGICA, an initiative under the European Union’s Horizon 2020 program.
Access Bank Plc, Nigeria’s largest bank by assets, received a $30 million loan from Swedfund, a Swedish development finance institution, to support small and medium-sized enterprises (SMEs) in the country.
The International Finance Corporation (IFC) has committed up to $25 million to Acumen’s Hardest-to-Reach (H2R) Fund, a $200 million initiative aimed at improving energy access in underserved regions of Sub-Saharan Africa.
© 2021 Empower Africa. All rights reserved.
