• First investments from FFA 3 are expected in early 2026, according to AfricInvest Europe.
• AfricInvest Europe targets 13 transactions with Franco-African Fund 3.
• The fund reached €50m in its first closing, with a final target of between €100m and €150m.

AfricInvest Europe, the French subsidiary of the pan-African investment group AfricInvest and licensed by the AMF (Autorité des Marchés Financiers), announced the first closing of its Franco-African Fund 3 (FFA 3) at €50 million. According to the company, this marks the operational launch of the third generation of the fund, initially created in 2017 to channel French investment into Africa. With this first tranche, AfricInvest Europe reports that its assets under management now total approximately €150 million.

AfricInvest Europe states that the FFA 3 will target between 10 and 12 French companies, primarily small and medium-sized enterprises (SMEs) and mid-sized companies (ETIs), which already operate in Africa or plan to expand their operations there. The investment strategy focuses primarily on equity financing. The firm anticipates a final closing by the end of 2026, with a potential size of €100 to €150 million, contingent upon the participation of additional private and institutional investors.

The fund is described as aiming to support companies with annual earnings before interest, tax, depreciation, and amortization (EBITDA) exceeding €2 million and demonstrating strong growth trajectories. AfricInvest has highlighted priority sectors including health and pharmaceuticals, industry and logistics, renewable energy, and education or digital technologies. While the fund is presented as pan-African, AfricInvest identifies West and North Africa as the likely focal regions, with some allocation also made towards East and Southern Africa.

Institutional partners play a significant role in the structure. Proparco, the private sector arm of the French Development Agency (AFD), has supported the Franco-African Fund series since its inception. Its financial contribution to FFA 3 has not been disclosed, but AfricInvest notes that Proparco also brings expertise in governance and operations in sub-Saharan Africa. Bpifrance, the French public investment bank, is also participating again as a co-founder and anchor investor, continuing its role from the earlier funds. AfricInvest has also cited commitments from private groups, including Société Générale, BNP Paribas, and Orange.

The earlier funds, FFA 1, launched in 2017, and FFA 2, launched in 2020, each raised around €70 million, according to AfricInvest. Together, they financed 18 French companies with activities on the continent, and AfricInvest claims that the combined effect leveraged more than €200 million through co-investments and bank financing. One example cited by the firm is the French industrial company Mathevon, which has operated a plant in Tunisia since 2010. AfricInvest reported that its exit from this investment in May 2025 generated a 25 percent increase in valuation.

The new fund is being launched against a backdrop of political and economic uncertainty in parts of Africa. Independent observation reveals that French investors might face risks linked to currency volatility and competition from Chinese-backed initiatives, such as the Belt and Road. AfricInvest has stated that it applies due diligence procedures to manage these risks, including country risk assessments, currency hedging mechanisms, and compliance with environmental, social, and governance criteria.

AfricInvest Europe states that the FFA 3 could make its first investments in the first quarter of 2026, with individual tickets expected to be in the range of €5 to €8 million. The scale of the fund’s impact will depend on whether it reaches its final target size and succeeds in attracting further co-investors.

Idriss Linge