European DFIs Invest $80M in BluePeak Fund to Support Africa’s Mid-Market Growth
Four European Development Finance Institutions (EDFIs)—British International Investment (BII), FMO, Swedfund, and the Swiss Investment Fund for Emerging Markets (SIFEM)—have jointly pledged $80 million to BluePeak Private Capital Fund II (BPCF II). The fund focuses on addressing the financing gap for mid-sized businesses in Africa, with a strong emphasis on supporting sustainable development, good governance, and environmental, social, and governance (ESG) practices. The commitment aims to help businesses in strategic sectors such as food manufacturing, pharmaceuticals, industrial packaging, and financial services, contributing to the continent’s economic growth.
Africa’s mid-market sector faces a significant underfunding challenge, which hinders the growth potential of many viable businesses. The infusion of capital from the EDFIs seeks to address this issue by providing the necessary financial support to companies that can create jobs, boost local value chains, and foster industrial clusters. With this investment, BPCF II will focus on businesses with the potential for long-term, sustainable growth.
The EDFIs have each committed a specific amount to the fund: $30 million from BII, $15 million from FMO, $20 million from Swedfund, and $15 million from SIFEM. The combined support highlights a united effort by European financial institutions to fill the financing gap in Africa’s private sector, particularly for mid-sized companies that face difficulty in accessing flexible and affordable funding.
Chris Chijiutomi, Managing Director of British International Investment, emphasized the importance of diverse financing options for businesses in Africa, especially those requiring tailored solutions. He expressed enthusiasm about collaborating with other European DFIs to support BPCF II and expand the private credit market across the continent. This partnership is seen as a crucial step in fueling the growth of businesses and contributing to economic development in Africa.
The EDFIs’ investment is also aligned with their broader goals of increasing financial inclusion and fostering sustainable job creation, particularly for women and youth. The partnership is expected to provide much-needed capital to resilient businesses, helping to close the significant funding gap and promote long-term economic development across Africa. Walid Cherif, Managing Partner of BluePeak, also noted that the commitment represents a vote of confidence in their strategy, further solidifying the fund’s role in mobilizing capital for impactful businesses across high-growth markets in Africa.
Source: Leadership