AfDB invests $11m in Luxemburg-based BluePeak Private Capital Fund for SME in Africa

The African Development Bank, AfDB, has made equity investment worth $11 million in Luxemburg-based BluePeak Private Capital Fund to support mid-size firms, including in the pharmaceuticals, agribusiness, manufacturing, and logistics sectors, across Africa.

The Abidjan-based bank in a statement said BluePeak – a flagship private capital fund – will provide growth capital to middle-sized companies with the potential to become pan African market leaders.

“The Fund will target adding value to portfolio companies by enabling their expansion, recapitalization, and deleveraging. It is expected to make at least eight investments of $8 million to $25 million in companies with established cash flow generation,” the statement added.

BluePeak’s current portfolio of companies expands many areas; 22% agri-business, 22% manufacturing and packaging, 12% pharmaceuticals, 12% fintech and financial services, and 11% each in information technology and telecommunication, logistics, and commercial real estate.

AfDB said the investment promises several benefits. It will ensure the fund’s adherence to the best standards. “By investing in BluePeak, the African Development Bank will support an indigenous fund manager with a strong knowledge of African markets to invest in underserved small and mid-size companies. Fund managers have identified investment opportunities across Africa, covering over 15 countries,” it added.

“The African Development Bank’s equity investment is expected to contribute to the creation of 1,142 full-time jobs. It will support the construction of 6.400 telecommunication towers, and an increase in the production of malaria drugs from 33 million units in 2022 to 75 million units in 2027”.