The European Investment Bank (EIB), through its arm EIB Global, has committed €25 million to Amethis Fund III, a pan-African private equity fund that supports the growth of medium-sized companies across the continent.
Focus on Low- and Middle-Income Populations
Amethis Fund III will target companies supplying essential goods and services to low- and middle-income populations in Africa. Priority sectors include:
- Healthcare
- Business services (logistics & IT)
- Manufacturing and distribution (agribusiness & consumer goods)
- Non-banking financial services
- Infrastructure and energy-related services
Promoting Sustainability and Social Impact
The fund prioritises investments that contribute to achieving the following goals:
- Gender Equality: Amethis Fund III adheres to the 2X Challenge criteria for funds, promoting female leadership and empowerment.
- Sustainable Employment: The fund invests in companies offering employees health coverage and promoting decent work practices.
- Climate Considerations: Amethis Fund III supports businesses that contribute to a low-carbon future.
“This partnership addresses a critical need for patient equity capital in Africa,” said EIB Vice President Thomas Ostros. “By supporting Amethis Fund III, we aim to empower African businesses to grow and create positive social and environmental impact,” says EIB Vice President Thomas Ostros.
Addressing Climate Challenges in Africa
The investment aligns with the EIB’s commitment to tackling climate change in Africa. Climate change poses a significant threat to the continent’s economic development, with the potential to push millions into poverty.
The EIB emphasizes the importance of public-private partnerships in mobilizing climate finance. The Bank has a proven track record of using innovative solutions to attract private capital to green projects across Africa.
EIB’s Track Record in Africa
Over the past decade, the EIB has invested over €32 billion in various sectors across Africa, including green energy, water, infrastructure, and social projects. Examples include:
- Benin: €10 million investment for low-carbon solar energy access to 600,000 people.
- Uganda: €12.5 million investment in ENGIE to provide reliable and affordable off-grid solar energy to 1.4 million Ugandans.
- Madagascar: €10 million investment in WeLight to bring solar energy to 45,000 households.
EIB’s Continued Commitment to Africa
In 2023, the EIB invested over €350 million in equity funds operating in Africa, bringing its total investment in African funds to nearly €3 billion.
These funds have provided financing to over 2,000 businesses, with a focus on climate action and environmental sustainability.
Furthermore, the EIB signed a US$40 million investment deal with Acre Export Finance Fund I at the Africa Climate Summit in Nairobi to support climate infrastructure projects across Africa.
