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Proparco pledges $17.25 million to Alterra Africa Accelerator Fund
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The fund targets established African companies with expansion potential
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Investment highlights growing demand for private equity amid tight financing
Proparco, private sector arm Development Agency Franchise (AfD) group, announced On April 21, $17.25 million was invested in the Alterra Africa Accelerator Fund (AAA), a private equity vehicle focused on growing African companies.
The fund, managed by Alterra Capital Partners, targets profitable businesses operating in strategic sectors of African economies, particularly Eastern and Southern Africa. It focuses on established companies with strong growth potential and the ability to generate employment and local value.
With the support of Proparco, the fund aims to expand its capacity to invest in companies that drive employment and economic activity. Alterra's current portfolio includes companies in food and beverage, hospitality, tourism and services in countries such as Kenya, South Africa, Tanzania, Uganda and Rwanda.
These include coffee chain Java House in East Africa, Chill Beverages in South Africa, ARP Africa Travel Group in the tourism sector and Cobra Group in logistics and security services. According to Proparco, these companies support more than 4,000 direct jobs, with women making up 48% and people under 35 representing 60%.
Fund reaches final close amid investor interest
This investment marks the final close of the Alterra Africa Accelerator Fund, which was launched in 2020 following the spin-off of The Carlyle Group's Africa team. Based in Mauritius, the pan-African fund targets capital of between $300 million and $400 million, aiming to build a diversified portfolio of leading companies in their markets.
As well as Proparco, the fund has attracted institutional investors such as the African Development Bank and the International Finance Corporation. The deal reflects the continued interest in private equity for African development companies, at a time when access to financing remains constrained.
Borrowing costs in Africa rose 91% between 2020 and 2024, driven by the lasting effects of the Covid-19 pandemic, tight global monetary conditions and geopolitical tensions, according to a report published on April 14 by One Data, a platform of the One Campaign.
Sandrine Genagne