African Development Bank to invest USD 11 million in BluePeak Private Capital Fund | African Development Bank Group

The Board of Directors of the African Development Bank Group has approved an $11 million equity investment in BluePeak Private Capital Fund toward its $155 million final close target. The investment furthers the bank’s goal of supporting medium-sized businesses, including in the pharmaceutical, agribusiness, manufacturing and logistics sectors across Africa.

BluePeak, a flagship private equity fund based in Luxembourg, will provide growth capital to mid-market companies with the potential to become pan-African market leaders. The Fund will focus on adding value to portfolio companies by enabling their expansion, recapitalization and deleveraging. It is expected to make at least eight $8 million to $25 million investments in companies with established cash flow generation.

BluePeak’s current investment pipeline includes 22% agribusiness, 22% manufacturing and packaging, 12% pharmaceuticals, 12% fintech and financial services, and 11% each in information technology and telecommunications, logistics and commercial real estate. BluePeak is expected to attract investment from other development finance institutions.

Walid Cherif, co-founder of BluePeak Private Capital, said: “The African Development Bank’s commitment to our flagship fund is a strong sign of confidence in our strategy to support impactful businesses in Africa. SMEs in Africa continue to face funding challenges due to various macroeconomic setbacks. BluePeak was established to fill some of this funding gap.”

The African Development Bank equity investment promises several benefits. It will ensure that the fund meets the best standards.

By investing in BluePeak, the African Development Bank will support an indigenous fund manager with strong knowledge of African markets to invest in underserved small and medium-sized companies. Fund managers have identified investment opportunities across Africa, in more than 15 countries.

The equity investment from the African Development Bank is expected to help create 1,142 full-time jobs. It supports the construction of 6,400 telecommunications towers and an increase in malaria drug production from 33 million units in 2022 to 75 million units in 2027.

As seven of the companies in the portfolio operate in rural areas, the investment will also benefit women and other vulnerable members of communities, particularly in agribusiness.

The investment strategy of the BluePeak Fund is aligned with that of the African Development Bank High 5 priorities, in particular Unpleasant: industrializes Africa, improve the quality of life of the people of Africa, And feeding Africa.

The equity investment will contribute to the integration of Africa on a continental and regional level through private sector promotion. The investment is also in line with the African Development Bank’s priorities for private sector development through support to small and medium-sized enterprises. In addition, it will also advance the Bank’s strategy to develop Africa’s pharmaceutical manufacturing capabilities on a continent-wide basis.