Alitheia IDF (AIF), Africa’s first women-led and women-focused private equity fund, has announced the final close of the $100 million fund, with the European Investment Bank (EIB) contributing $24.6 million as the closing investor. Alitheia IDF becomes Africa’s largest gender-lens private equity fund by value with this final close.
Alitheia IDF invests in growth-stage companies in Nigeria, South Africa, Ghana, Zimbabwe, Lesotho, and Zambia, led by principal partners Polo Leteka and Tokunboh Ishmael. The fund’s mission is to close the $42 billion investment gap between male and female entrepreneurs in order to boost African women’s economic power as producers, distributors, and consumers.
The fund began carrying out this objective in 2021 by leading investment rounds in five women-led businesses in key industries such as agribusiness, education, manufacturing, housing, technology, and logistics. Jetstream Africa (Ghana), ReelFruit Ltd (Nigeria), SKLD (formerly SchoolKits, Nigeria), AV Light Steel (South Africa), and Chika’s Food are among the investee companies (Nigeria).
“Globally, women have tremendous purchasing power as consumers and controllers of household economics. In the same vein, women entrepreneurs have a significant presence in Africa’s SME sector with African women making up 58 per cent of the continent’s self-employed population. However, despite this economic power and presence, African women are underserved as consumers and producers,” Ishmael said.
“This has had huge impact on economic growth as the potential of more than half of the continent’s population remains untapped due to structural and systemic issues. We are proactively working towards filling this gap with a clear mandate to support women-led businesses across the continent while raising awareness for gender smart investment as a path towards inclusive economic growth.”
EIB Vice-President Thomas ÖSTROS said: “Women-owned businesses still struggle to raise funding, although they have proven their performance. I am very pleased to support a true ‘by-women for women’ 2X Flagship fund that invests in companies creating job opportunities while enhancing diversity in the sub-Saharan Africa’s economy. The EIB’s investment in Alitheia IDF is part of our SheInvest initiative seeking to mobilise €2 billion of investment to boost gender equality and female economic empowerment across the African continent. I truly believe that gender equality makes societies stronger.”
The Industrial Development Corporation of South Africa, the African Development Bank, the Bank of Industry Nigeria, FinDev Canada, the Dutch Good Growth Fund, and the European Investment Bank are among the investors who have backed Alitheia IDF.
