FIVE achieves fourth close bringing total commitments to €82.5m
AfricInvest has announced the fourth close of FIVE, an evergreen platform for investing in financial institutions in Africa. This fourth closing brings FIVE’s total commitments to €82.5m. Subsequent closings are expected to take place over the coming years to reach the fund’s target size of €R200m. Through its investments, FIVE aims to improve access to financial services for the growing African population, while achieving attractive financial returns for its investors.
AfDB, the African Development Bank, joined the capital of FIVE alongside existing investors FMO and BIO, the development finance institutions of the Netherlands and Belgium, respectively; Norfund, the Norwegian investment fund for developing countries; IFU, the Danish investment fund for developing countries; KfW, the German government-owned development bank and CBK Pension Fund, the pension fund of the Central Bank of Kenya.
“We are pleased to complete this fourth fund raising round, and proud to have AfDB joining FIVE’s journey. This successful closing with such a renown investor reflects our strong commitment to the African financial sector and the attractive investment opportunities available. AfDB’s support is a significant milestone for the fund and will certainly encourage other major global investors to rally around our vision and ambition to pave the way to universal access to financial services on the African continent,” said Omar Bekkali, Director at AfricInvest.
Stefan Nalletamby, Director, Financial Sector Development of the AfDB, added: “The African Development Bank has committed €15m in the capital of FIVE, managed by AfricInvest. By equipping African financial institutions with innovative solutions and supporting them in their digital transformation, FIVE will play a role in strengthening Africa’s private sector as the supported banks will be in a better position to provide long term financing to SMEs. In addition, FIVE’s mandate of fostering and enabling financial inclusion, notably through support to MFIs and Fintech companies, will offer innovative solutions to financially underserved groups on the continent.” Source: Africa Global Fund