Afreximbank’s FEDA Records $40.3 Million Profit in 2024, Expands Impact Across Africa
The Fund for Export Development in Africa (FEDA), the impact investment arm of the African Export-Import Bank (Afreximbank), has reported a record net income of $40.3 million for 2024, a 72 per cent jump from the $23.4 million posted in 2023. According to its newly released annual report, this milestone underlines FEDA’s growing influence as a catalyst for private capital and development finance across the continent.
Established in 2019, FEDA was created to go beyond Afreximbank’s traditional trade finance activities by providing equity, quasi-equity, and private credit to transformative businesses and projects. By the end of 2024, the fund’s investments had surged to $573.8 million, with $410 million channelled into new ventures across sectors such as infrastructure, technology, healthcare, and even sports. Nigeria, Benin, Guinea-Bissau, Malawi, and The Gambia also joined FEDA in 2024, increasing its membership to 19 African states.
FEDA operates through a suite of specialised vehicles, including its flagship Direct Equity Fund I, which has raised and committed $270 million to businesses with scalable potential. Its high-profile deals include a strategic partnership with Arise Integrated Industrial Platforms (IIP), a Pan-African developer of industrial parks, and an $85 million equity contribution to the same entity in 2022. The fund has also supported unconventional ventures, such as a stake in Team Drogba — an electric boat racing outfit spearheaded by Ivorian football icon Didier Drogba.
Beyond equity, FEDA has diversified its portfolio through the Africa Credit Opportunities Fund (ACOF), which has mobilised $125 million to provide flexible debt financing to African businesses. Its most prominent project so far is the African Medical Centre of Excellence, a landmark healthcare and research initiative. For smaller enterprises, FEDA’s Venture Fund has allocated $25 million to support African SMEs, addressing a longstanding challenge of limited access to patient capital.
Looking ahead, FEDA plans to launch a $150 million Africa Film Fund in 2025 to boost the continent’s creative industries, particularly Nollywood. The institution also manages Libreville Africa Holdings Limited, a $366.8 million vehicle with diverse stakes, including a five per cent equity position in Nigeria’s Geregu Power Plc and a $31.3 million investment in Mauritania’s FMCG player TND SA. With an additional $258.7 million in fresh capital raised in 2024 and $20.8 million earned in service fees, FEDA is cementing its role as a driver of sustainable growth and long-term investment in Africa’s economic future.
source: leadership