The recent news of British International Investment (BII) committing $20 million to the Alterra Africa Accelerator Fund (AAA Fund) has sparked excitement in the investment community. The AAA Fund, spearheaded by Nigerian industrialist Aliko Dangote and supported by prominent investors like Carlyle Group co-founders, aims to uplift mid-cap companies across Africa, with a focus on key sectors such as telecommunications, technology, financial services, consumer products, and infrastructure.
Established in 2020 by former Carlyle Group executives, Alterra Capital Partners has set an ambitious target of raising $500 million to drive growth in various sectors across Africa. The fund has already raised $140 million in its initial phase, attracting a diverse group of investors including institutional entities like Norfund AS, Standard Bank Group Ltd., and International Finance Corp. The AAA Fund is strategically positioned to invest in companies that stand to benefit from Africa’s growing population and rising incomes, with a specific focus on sectors crucial for the continent’s economic development.
The fund aims to stimulate job creation, enhance productivity, and contribute to sustainable economic development by targeting mid-cap, EBITDA-positive companies that provide essential goods and services. With offices in Johannesburg, Nairobi, and Mauritius, Alterra Capital Partners boasts a team with over 100 years of combined private equity experience, well-equipped to identify and nurture opportunities that align with Africa’s growth trajectory.
The $20 million commitment by BII to the AAA Fund signifies a significant step towards harnessing Africa’s potential for economic growth. By focusing on essential sectors and mid-cap companies, the fund aims to create employment opportunities and improve the quality of life across the continent. This commitment, alongside investments from other global players, not only provides the necessary capital to accelerate growth in key sectors but also highlights the increasing attractiveness of African markets to international investors.
As Africa continues to emerge as a hub for innovation and economic opportunity, strategic investments like the AAA Fund will play a crucial role in shaping the continent’s future trajectory. The commitment from BII and other investors underscores the confidence in Africa’s potential and the belief in its ability to drive sustainable economic growth and prosperity for its people.
