The AfricaGrow initiative is evidence of the cooperation between public and private partners and amounts to EUR 200 million in total. EUR 100 million come from the Federal Ministry for Economic Cooperation and Development (BMZ), EUR 30 million from KfW subsidiary DEG and 70 million from Allianz insurance companies, general accounts.
Which funds does AfricaGrow target?
Funds with experienced, entrepreneurially-driven teams
Our sweet spot is funds with experienced, entrepreneurially-driven teams. We believe in integrity and enduring partnerships. As such we would like to be engaged with teams which contribute their expertise, hard work and passion to support promising companies that deliver a positive and measurable impact, but also an adequate financial return.
Teams with a proven track record
We intend to work with teams that have proven their ability to invest in companies with scalable business models, that are committed to real customer value, and have a clear path to profitability.
Companies with scalable business models with market traction
We are sector-agnostic, and particularly interested in funds which invest in companies with proven business models and strong market traction.
Who will benefit from the AfricaGrow initiative?
The Fund is designed to address the financing needs of African SMEs and start-ups by investing in African private equity and venture capital funds, whereby the target funds service the financing requirements of local SMEs, start-ups across multiple sectors, and technology-based start-ups.
To a limited extent, the Fund can also provide partial financing for technical support in, for example, building managerial capacities, and improving environmental and social standards and processes at the VC/PE-fund level, as well as to selected SMEs and start-ups.
In addition to financial returns to its investors, the Fund is designed to generate a measurable positive impact on the environmental and social conditions required to increase investment flows to Africa. The aim is to finance up to 200 innovative SMEs and start-ups in reform-oriented African countries by 2030, through investing into local funds, all with the objective of promoting sustainable economic and social development. It is estimated that more than 25,000 new jobs can be created by 2030 as a result of these investments.
As a legally independent entity, AfricaGrow is a key instrument of the CwA initiative, which was launched in 2017 under the German G20 presidency. The Fund will work closely with Pan-African regional and country-specific funds, primarily in CwA countries (Benin, Burkina Faso, Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia) but also with a broader country definition.
The Fund will commit capital to market-oriented private funds with a strong and proven track record in the private sector. The Fund will not make any direct investments into single companies.
AfricaGrow Key Facts and Figures
|AfricaGrow Fund Size||Up to EUR 200mn|
|AfricaGrow Fund Currency||EUR|
|Inception Date||November 2019|
|Vehicle||Germany-based closed-end fund|
|Expected Number of Commitments to Target Funds||Up to 20|
|Planned Investment Phase||4Q 2019 – 4Q 2023 (+2 years optional extension)|
|Fund Lifetime||4Q 2019 – 4Q 2034 (+2 years optional extension)|
|Target Sectors||Sector-diversified (education, health, agriculture, mobility, e-commerce, finance, clean energy, technology)|
|Potential Investment Volume per Transaction||EUR 5–15mn for VC funds, and EUR 10–20mn for growth equity funds|
|Investment Restrictions||Max. 15% of the total committed capital in a single target fund|
|Investment Strategy||Social and environmental standards of KfW/DEG need to be fulfilled|
|Technical Assistance Facility in Place||To a limited extent and subject to matching grant financing, technical assistance for target funds and portfolio companies can be provided|
An initiative in cooperation with the
This information does not constitute or form part of any offer to issue or sell, or any solicitation of an offer to subscribe or purchase any investment. This information is directed only at: (i) potential target funds eligible for AfricaGrow to invest in and (ii) certain persons having professional experience relating to investments. AfricaGrow, “a German investment partnership (fund of fund) in private equity and venture capital”, is closed and therefore not open for new investors or available to new investments.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or willful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.
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