The European Investment Bank’s specialized branch for global development, EIB Global, has pledged €25 million to the Amethis Fund III, a private equity fund with a focus on the African continent.
This substantial financial commitment is intended to boost the growth of medium-sized enterprises in Africa that cater to the needs of low- and middle-income groups, thereby promoting economic growth and sustainable development across a range of sectors.
Amethis Fund III has set its sights on investing in companies within the healthcare, logistics, IT (business services), manufacturing, distribution (including agribusiness and consumer goods), non-banking financial services, and infrastructure and energy sectors.
This investment strategy is in line with the objectives of EIB Global and the European Union’s Global Gateway strategy, which aim to encourage economic progress in various regions, particularly in sub-Saharan Africa.
Thomas Östros, the EIB Vice-President, expressed the bank’s dedication to supporting Amethis’ initiatives in Africa, noting the continent’s significant potential and untapped opportunities. He pointed out that this partnership is particularly important in addressing the shortage of long-term equity capital that is a barrier to the growth of African enterprises.
Luc Rigouzzo and Laurent Demey, the managing partners at Amethis, expressed their gratitude for the EIB’s continued support. They emphasized that this strategic investment enables them to strengthen mid-sized businesses, enhancing their ability to provide high-quality products and services to African consumers. Their goal is to foster the emergence of African market leaders who will contribute to regional integration and sustainable economic prosperity.
The EIB has a longstanding history of investing in equity funds that are geared towards Africa, with close to €3 billion allocated to various regional and country-specific funds. The bank’s initial investments are often pivotal in drawing additional investors, largely due to its commitment to upholding stringent environmental, social, and governance (ESG) standards, which maximizes the positive impact on the companies it invests in.
Over the past 12 years, Amethis has been instrumental in the expansion of more than 30 African companies, which has led to the direct creation of over 40,000 jobs. These companies have been significant contributors to the continent’s economic development and have played a key role in advancing important Sustainable Development Goals.
With offices in Nairobi, Abidjan, Casablanca, and Cairo, Amethis boasts a robust local presence that enables it to spot new investment opportunities and stay abreast of market trends in each region. This local footprint has cemented Amethis’ reputation as a reliable partner for growing companies, with a focus on value creation and positive societal impact.
The EIB’s investment in Amethis Fund III is a testament to the increasing acknowledgment of the vital role that private capital plays in spurring economic development in Africa.
