$20 Million from UK’s BII to Aid African Mid-Cap Firms

British International Investment (BII—UK’s development finance institution) joined in with $20 million into the Alterra Africa Accelerator Fund (AAA Fund)—a private equity scheme spearheaded by the well-known Nigerian industrialist Aliko Dangote. Targeting telecommunications, technology, financial services, consumer goods, and infrastructure, the investment will aim to assist mid-cap companies throughout Africa.

Launched in 2020 by ex-Carlyle Group executives, Alterra Capital Partners has established an ambitious $500 million target to drive expansion across these industries. This first fund raised $140 million from a wide variety of investors. The well-known contributors include the Carlyle co-founders David Rubenstein and Bill Conway, as well as major institutional names such as Norfund AS, Standard Bank Group Ltd., International Finance Corp., Germany’s Deutsche Investitions- und Entwicklungsgesellschaft GmbH and Allianz SE’s AfricaGrow fund.

Growth in Selected Sectors

The AAA Fund aims to capitalize on the rapid population growth and rising incomes in Africa by investing in companies benefiting from these trends. The priority sectors — telecommunications, technology, logistics, healthcare, consumer goods, and retail — are instrumental to Africa’s economic development. Focuses on mid-cap companies that are EBITDA-positive and provide essential goods and services to stimulate productivity and encourage price-competitive job creation to drive sustainable economic growth across Africa.

Operating from offices in Johannesburg, Nairobi, and Mauritius, the firm combines more than a century of collective private equity experience. They are well poised to spot and help develop opportunities that align with the continent’s growth potential, given their deep understanding of the African market.

It is a further step towards unlocking Africa’s economic potential, with the BII’s $20m commitment as one of the single largest investments of its kind in Africa. Supported by investors from around the world, the AAA Fund is designed to help close the financial gap for mid-cap companies and improve the continent’s economy.