Impact investment management company Summit Africa has secured about R900-million in investment commitments toward its second private equity fund Summit Private Equity Fund II’s (SPEF II’s) target size of R2.5-billion to R3-billion.

This includes a $20-million, or about R350-million, investment commitment from development finance institution the International Finance Corporation (IFC), which is a member of the World Bank Group.

Further, the IFC has also approved a $5-million co-investment envelope to participate alongside the SPEF II in investments that amplify the IFC’s broader impact objectives, Summit says.

Summit will shortly deploy equity capital into its investment pipeline of small- to mid-market companies in the financial services, ICT services and food supply chain sectors, it adds.

The fund will drive financial and digital inclusion, job creation and food security through investment in small-to-mid market companies.

A key investment priority includes financial and digital inclusion by expanding access to financial services and ICT services.

Additionally, it will prioritise investments in food security by backing scalable businesses in food processing, packaging, and distribution to reduce waste and improve access.

The fund will also prioritise transformation and diversity by supporting portfolio companies to align with the global gender-equality initiative 2X Challenge framework.

Meanwhile, Summit’s first fund, SPEF I, has successfully invested $115-million since 2019. It delivered both measurable impact and strong commercial performance, which validates Summit’s sector-focused and thesis-driven approach to delivering commercial returns alongside significant social impact, the company says.

“The IFC’s backing supports Summit’s position as an impact-focused private equity platform in Southern Africa. The IFC's commitment affirms our investment strategy and strengthens our ability to mobilise further support from local and international institutional investors towards SPEF II’s investment and social impact objectives," says Summit managing partner Tomi Amosun.

“With the IFC’s support, we will back companies that deliver both strong commercial returns and systemic change in financial inclusion, digital inclusion and food security,” he says.

“The IFC’s investment in Summit Africa’s SPEF II is about unlocking potential and driving transformation. By supporting local fund managers, we channel capital where it’s needed most, namely helping small and mid-sized businesses scale and become engines of growth,” says IFC VP for Africa Ethiopis Tafara.

“By focusing on sectors like financial services, technology, and food processing, the fund will help improve food security, increase access to finance and digital tools, and generate jobs that change lives across Southern Africa,” he says.