EIB invests €25 million in Amethis Fund III to boost economic growth, sustainable development

Cynthia Ezekwe

European Investment Bank (EIB Global) has invested €25 million into Amethis Fund III, an investment fund manager active in Africa and Europe. This investment aims to support the growth of medium-sized businesses that serve low- and middle-income populations, promoting economic growth and sustainable development in various sectors across the continent.

Amethis Fund III will target companies supplying goods and services to low and middle-income populations in Africa. The target sectors include healthcare, business services such as logistics & IT, manufacturing and distribution including agribusiness and fast-moving consumer goods, non-banking financial services, and services related to infrastructure and energy.

The fund’s strategy is aligned with EIB Global’s investment goals as well as the EU’s Global Gateway strategy by supporting economic development in a diversity of geographies, notably sub-Saharan countries. The fund will pursue an impact-driven strategy developed by Amethis to address critical issues for the continent’s sustainable development, by focusing on gender equality, sustainable employment – with a particular emphasis on health coverage, and climate considerations.

Commenting on the investment, Thomas Ostros, EIB vice president, said, “The EIB is happy to support Amethis in its effort to invest in small companies in low- and middle-income countries across Africa. We see Africa as a close and important partner to the Bank, which has a lot of potential and untapped opportunities. However, African enterprises still don’t have enough patient equity capital they need for them to grow, which is what our partnership with funds like Amethis seek to address.”

Ostros noted that private capital is a powerful driver of economic development in Africa, adding that private equity funds, through investment in local enterprises, are playing a catalytic role by bringing external funding as well as knowledge and technical expertise to the companies they invest in. 

Luc Rigouzzo and Laurent Demey, managing partners at Amethis said, “We are proud to receive the renewed support from the European Investment Bank. Building upon our prior collaborations, its strategic support will allow us to continue helping medium-sized companies deliver better goods and services to the African consumers and to become African champions by promoting their regional integration and sustainable economic growth.”

The EIB has a long-standing history of investing in equity funds focused on Africa, with nearly €3 billion committed to both country-specific and regional funds. The bank’s early investment has played a significant  role in attracting other investors due to its adherence to best market practices in terms of environmental, social, and governance criteria, ensuring maximum impact at the portfolio company level.

Over the past 12 years since  its creation, Amethis has supported the growth of more than 30 African companies employing more than 40,000 people. These companies not only contribute to the development of a high-quality economic fabric, but also address important sustainable development goals for the continent.

Amethis benefits from a strong on-the-ground presence across four African capitals of Nairobi, Abidjan, Casablanca and Cairo, which helps identify new opportunities and monitor the market’s evolution in each country. This  local presence enables Amethis to build a reputation for itself of trusted partners to accompany companies in their new expansion phases, favoring value creation and impact.