Africa's economic landscape is rapidly expanding, yet many high-potential businesses struggle to secure the capital needed for growth. To address this gap, British International Investment (BII), the UK’s development finance institution and impact investor, has pledged $20 million to the Alterra Africa Accelerator Fund (AAA Fund). This private equity fund is dedicated to fostering financial inclusion, digital transformation, job creation, and women’s empowerment across Africa.

Backing Transformative Businesses

Managed by Africa-focused private equity firm Alterra Capital Partners, the AAA Fund aims to raise a total of $400 million to support high-growth businesses. The fund primarily invests in companies providing essential goods, services, and business solutions, with a focus on East and Southern Africa. Through strategic capital deployment, the fund seeks to drive sustainable development while delivering strong financial returns.

Strong Global Investor Support

Since its first close at $140 million in 2023, the AAA Fund has continued to attract significant investments from major global financial institutions. Among its backers are Norfund AS, Standard Bank Group, International Finance Corporation (IFC), Allianz SE’s AfricaGrow Fund, and private equity veterans David Rubenstein and Bill Conway, co-founders of Carlyle. The continued confidence from these investors underscores the fund’s potential to generate economic and social impact.

Commitment to Gender Inclusion

Beyond financial growth, the AAA Fund prioritizes gender-inclusive investment strategies. It qualifies as a 2X Investment under the 2X Challenge, an initiative that promotes gender-lens investing, of which BII is a founding member. As part of this commitment, Alterra ensures that all portfolio investments align with at least one of the 2X Criteria, actively working with businesses to create gender-inclusive opportunities.

Alterra’s Expertise in African Investments

Alterra Capital Partners was formed in 2020 following the spin-out of the Carlyle Africa team and the integration of the Anglophone team of Emerging Capital Partners. With over a century of combined private equity experience, Alterra’s team has invested $1.9 billion into 20 African companies. Their deep expertise in supporting businesses that meet essential consumer and enterprise needs positions them as a key player in Africa’s investment landscape.

BII’s Long-Term Vision for Africa

For BII, this investment aligns with its broader strategy of channeling capital into businesses that strengthen Africa’s economies. Sara Taylor, Head of PE Funds and Co-Investments at BII, emphasized the importance of the partnership, stating that BII is committed to empowering businesses that drive growth in emerging markets. She highlighted that this investment ensures capital reaches a diverse range of companies, fostering productive, sustainable, and inclusive development.

Geneveive Sangudi, Partner at Alterra, welcomed BII’s investment as a crucial milestone in advancing sustainable and inclusive growth across Africa. She noted that the commitment brings credibility and resources to Alterra’s strategy of supporting transformative businesses in high-growth sectors. With robust institutional backing, the AAA Fund is well-positioned to provide long-term capital support to businesses essential to Africa’s economic progress.