• Proparco commits $17.25 million to Alterra Africa Accelerator Fund

• Fund targets established African companies with expansion potential

• Investment highlights growing demand for private equity amid tight financing

Proparco, the private-sector arm of the Agence française de développement (AFD) Group, announced on April 21 a $17.25 million investment in the Alterra Africa Accelerator Fund (AAA), a private equity vehicle focused on growing African companies.

The fund, managed by Alterra Capital Partners, targets profitable businesses operating in strategic sectors across African economies, particularly in East and Southern Africa. It focuses on established companies with strong growth potential and the ability to generate jobs and local value.

With Proparco’s backing, the fund aims to expand its capacity to invest in companies that drive employment and economic activity. Alterra’s current portfolio includes firms in food and beverage, hospitality, tourism, and services across countries such as Kenya, South Africa, Tanzania, Uganda, and Rwanda.

These include Java House, a coffee chain in East Africa, Chill Beverages in South Africa, ARP Africa Travel Group in the tourism sector, and Cobra Group, which operates in logistics and security services. According to Proparco, these companies support more than 4,000 direct jobs, with women accounting for 48% of the workforce and people under 35 representing 60%.

Fund reaches final close amid investor interest

The investment marks the final close of the Alterra Africa Accelerator Fund, launched in 2020 after the spin-off of The Carlyle Group’s Africa team. Based in Mauritius, the pan-African fund had targeted between $300 million and $400 million in capital, aiming to build a diversified portfolio of leading companies in their markets.

Alongside Proparco, the fund has attracted institutional investors such as the African Development Bank and the International Finance Corporation. The deal reflects continued interest in private equity for African growth companies, at a time when access to financing remains constrained.

According to a report published April 14 by ONE Data, a platform of the ONE Campaign, borrowing costs in Africa rose by 91% between 2020 and 2024, driven by the lasting effects of the Covid-19 pandemic, tighter global monetary conditions, and geopolitical tensions.

Sandrine Gaingne