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Financial institutions in Africa Development Partners International has secured $ 900m in the third quarter, closing a deal that could significantly boost the environmental impact of the Covid-19.
African Development Partners III’s DPI Fund exceeded $ 800m and has received an additional $ 250m to use in other companies.
Runa Alam, co-founder and executive director of DPI, said fundraising shows that investors are aware that there is money to be made to contractors that also affect social norms.
“Our approach is to make money in both profitable and emerging industries,” he said, noting that about 300m of the 1.3bn African population achieved this goal.
While acknowledging that the earthquake that followed the post-epidemic has slowed down in Africa, the rapid evacuation meant that companies were finding new ways to communicate with consumers. Some are offering “valuable” ideas to those with limited resources, he said.
“We have not seen any growth in our companies declining,” he said, referring to the profits made in businesses from the African drug manufacturer to Nigerian food and to a West African university studying far and wide.
Abi Mustapha-Maduakor, executive director of the African Private Equity and Venture Capital Association (AVCA), said: “It is gratifying to see that fund managers can close. There are opportunities, especially in businesses that use technology. ”
He acknowledged that the companies were struggling to come up with new financial solutions to the financial crisis and that face-to-face meetings between potential investors and new businesses were difficult.
African private equity spending increased by $ 1.2bn by 2020, down from $ 3.9bn in 2019, according to the AVCA. His first half of the 2021 report, which will be published this week, will show the beginning of the year with about $ 500m at the end.
Souleymane Ba, a partner at Helios Investments, who has been investing $ 4bn in African companies since 2004, said: “The market is working but it has to be very efficient and few of our African affiliates know much.”
Hendrik du Toit, chief executive of Ninety One, Anglo-South Africa’s finance manager, said Africa’s economic interest was low. “Unfortunately, many policymakers in Africa have not mentioned the promise of ‘Africa Rising’ which lasted 10 to 15 years ago,” he said.
Alam said the idea was very wrong. None of the 23 companies that DPI set for more than 14 years failed and DPI is always active, ”he said.
“We pay well in dollars,” he added. “Even though we are in the dark and dangerous in Africa, our mindset is still there. There are 1.3bn people, the world’s smallest, which means that, while some regions will have fewer people, Africa is still growing. It is a continent that we cannot ignore.”
The $ 900m invested in the DPI fund came from pension and finance funds, financial institutions, insurance companies, property managers, and funders, about half from Europe, a third from the US and the rest from the Middle East and Africa. .
In addition to those already in the DPI, which has $ 2.8bn in control, some of the 25 new partners (LPs) have invested at least $ 5m each, Alam said.
Previous DPI sales include Eaton Towers, an African telecommunications business sold to American Towers for $ 1.85bn, by Mansard, a Nigerian insurer, purchased by Axa.