Four of Europe’s main development finance institutions (DFIs) are jointly committing $80-million to pan-African private credit fund BluePeak Private Capital Fund II (BPCF II). The DFIs are British International Investment (BII), the Netherlands’ FMO, Sweden’s Swedfund, and the Swiss Investment Fund for Emerging Markets (SIFEM).

The BPCF II is focused on meeting the financing requirements of African mid-sized enterprises. The fund emphasises environmental, social and governance best practices and achieving meaningful impacts.

Africa’s mid-market sector is severely underfunded. The result is a continuing financing gap which restricts the growth of viable businesses. These businesses cannot access traditional financing because they either lack the collateral or have a limited credit history. Yet they could create jobs, strengthen local value chains, and widen access to essential services.

“We are proud to have the support of leading European DFIs as we continue to scale our mission of backing resilient and defensive businesses across high-growth markets,” highlighted BluePeak managing partner Walid Cherif. “Their commitment is a strong vote of confidence in our strategy to combine performance with impact, and it plays a critical role in mobilising the capital needed to close the significant funding gap across the continent. Raising [BPCF II] in less than four years since the first close of Fund I is a testament to sustained investor confidence driven by continued value creation and strategic positioning in the market.”

BII has committed $30-million to the new fund, with Swedfund adding $20-million, and FMO and SIFEM contributing $15-million each. This initiative also displays the commitment of these DFIs to work together to support African economic development. Their partnership with BluePeak is intended to assist the BPCF II to invest in African companies that show both commercial viability and the potential to provide development outcomes that can be measured.

The BPCF II is focused on strategic sectors, which have the potential to reinforce local value chains and develop industrial clusters. These include financial services, food manufacturing, industrial packing, and pharmaceuticals. There will be a strong commitment to gender inclusion, and the fund is global 2X Challenge (to invest in women) qualified and has the economic empowerment of women as a central purpose. Sustainability issues are integrated into BluePeak’s investment process, which stresses inclusive growth, resilience and long-term value creation.