AfricaGrow invests US$17M in two Tunisian funds in its pan-African growth strategy

TUNISIA – AfricaGrow, an investment fund set up by Allianz Global Investors, a subsidiary of the German insurance group Allianz, and the German Development Finance Bank (KfW), has made two commitments of €15 million (US$17.5m) each for the benefit of two funds in Tunisian, SPE AIF I and Cathay AfricInvest Innovation Fund (CAIF).

AfricInvest, based in Tunisia, is pursuing a pan-African growth strategy through its VC fund, CAIF. CAIF has invested in three portfolio companies so far.

It focuses on potential market leaders whose goal is to introduce established global technology concepts to the African region and to stand out mainly through innovative technologies.

“The cooperation with SPE Capital and AfricInvest gives us access to excellent partners who have convinced us with their vast network and local expertise which reflects the investment strategy of AfricaGrow”, said Martin Ewald, Managing Director and lead manager of the Allianz Global Investors investment portfolio.

“The two investments lay the foundation for a balanced portfolio, which we will enrich in the near future with other investments of capital in the African market.”

Martin Ewald – Managing Director, Allianz Global

“The two investments lay the foundation for a balanced portfolio, which we will enrich in the near future with other investments of capital in the African market.”

SPE AIF I is a private equity fund managed by the company SPE Capital, a private equity fund manager based in Tunisia.

It targets majority or minority private equity transactions with controlling power in rapidly growing or transforming SMEs.

It focuses on investments in portfolio companies located in North Africa and with strong growth potential in sectors such as manufacturing, services, logistics, healthcare and education.

Currently, the target fund is invested in four portfolio companies in Egypt, Morocco and Tunisia.

Cathay AfricInvest Fund is an investment vehicle that aims to become the first venture capital fund targeting Africa. It was set up through a joint venture between the Chinese firm Cathay Capital private Equity and the Tunisian AfricInvest.

according to Africa Global Funds, the two funds are therefore eligible for the objectives of AfricaGrow which targets African investment funds, with a scope on several countries.

“With the AfricaGrow fund of funds, KfW Entwicklungsbank is implementing a key initiative of the development investment fund, which was launched by Chancellor Merkel during the “Compact with Africa” summit in Berlin in October 2018,” Jan Martin Witte, Director of the equity finance department of KfW, said.

“We are pleased that with Allianz Global Investors we have found a competent partner who drives forward the implementation of the fund of funds’ investment strategy. We are convinced that these initial investments will make a significant contribution to the creation of growth and jobs in Africa.”

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