British International Investment (BII), the UK’s development finance institution, has committed $20 million to the Alterra Africa Accelerator Fund, bolstering the fund’s mission to capitalise on the burgeoning technology sector across the continent. The investment provides a significant boost to the Alterra fund, which is also backed by Nigerian industrialist Aliko Dangote and is aiming for a total capitalisation of $500 million.
The Alterra Africa Accelerator Fund, managed by pan-African private equity firm Alterra, is targeting impactful investments in key sectors driving financial inclusion, digital transformation, and job creation across Africa. While the fund will invest across the continent, it has a particular focus on East and Southern Africa.
This latest commitment from BII follows the fund’s initial close last year, which saw it raise $140 million from a diverse range of international and African investors. These include the International Finance Corp. (IFC), Norfund AS, DEG (the German development finance institution), Standard Bank, Allianz AfricaGrow Fund, and prominent private equity figures David Rubenstein and Bill Conway, co-founders of Carlyle.
Alterra was formed through the merger of Carlyle Africa and Emerging Capital Partners (ECP), bringing together over a century of combined African private equity experience. The firm operates from offices in Johannesburg, Nairobi, and Mauritius, providing it with a strong on-the-ground presence across key African markets.
Sara Taylor, Head of PE Funds and Co-Investments at BII, highlighted the strategic rationale behind the investment. “Our investment in the AAA Fund ensures our capital reaches a diverse range of companies, fostering productive, sustainable and inclusive economic development,” she said. “We are delighted to work with Alterra’s experienced team to advance our mission of empowering businesses that drive growth in Africa’s emerging economies.”
The fund’s investment strategy targets high-growth and high-impact sectors including telecommunications, technology, business services, consumer, and retail. Genevieve Sangudi, Partner at Alterra, expressed her enthusiasm for BII’s commitment. “BII’s commitment adds invaluable credibility and resources to our strategy of advancing sustainable and inclusive growth in Africa,” she stated. “This commitment will further accelerate our efforts to invest in transformative businesses across the continent, particularly in high growth and high impact sectors.”
Alterra believes that the current macroeconomic environment in Africa presents attractive investment opportunities, particularly as African corporates increasingly leverage technology to enhance efficiency and scale their operations. “This is an excellent time to put money to work in Africa as many of the current macro themes provide attractive potential investment opportunities,” Ms Sangudi noted. “For example, African corporates are using technology transformation to improve efficiency, reduce costs, increase output and achieve greater scale particularly in sectors such as logistics and financial services.”
Notably, the Alterra Africa Accelerator Fund qualifies as a “2X Challenge” investment, signifying its commitment to advancing opportunities for women through quality employment, business leadership, and access to finance. This aligns with a growing focus among impact investors on gender-lens investing and promoting women’s economic empowerment.
The $20 million commitment from BII highlights the increasing international appetite for investing in Africa’s rapidly expanding technology ecosystem. With a young and growing population, coupled with increasing mobile penetration and digital adoption, the continent presents a significant growth opportunity for tech-enabled businesses across various sectors. The Alterra Africa Accelerator Fund, with its experienced team and strong backing, is well-positioned to capitalise on this potential and contribute to the continent’s economic development.