HELIOS EU-AFRICA GLOBAL GATEWAY

Promoter – Financial Intermediary

SPECIAL PURPOSE ENTITY(IES)/FUND

Location

• Regional - Africa

Description

The project consists in an equity participation in Helios EU-Africa Global Gateway, a Pan African private equity fund focusing on companies in sectors aligned with the Global Gateway's priorities.

Additionality and Impact

The operation will support equity participation in Helios EU-Africa Global Gateway, a Pan African private equity fund focusing on companies in sectors aligned with the Global Gateway's priorities.

There is a growing demand for equity solutions in Africa with only few dedicated private equity investors focusing on majority stakes and Pan-African strategies. The Fund's dedicated investment team brings together a valuable mix of investment, operational and financial backgrounds, and in-depth understanding of the local market.



The Fund strategy is well aligned with the EU-Africa Global Gateway Investment Package (GGIP)'s priorities. The Fund pursues a targeted investment strategy including digital, healthcare, and education, which are sector pillars under the Global Gateway. In addition, across all sectors, the Fund will focus on companies with a strong digital/technology approach, in alignment with the objectives of the Global Gateway. Moreover, the Fund is expected to contribute to the creation of c. 7,000 (sustainable jobs sustainable growth and decent jobs being part of EU-Africa GGIP's priorities).

The Fund's strategy addresses various market failures including limited access to capital for Pan-African companies, lack of active fund managers in the targeted countries (i.e., limited competition and limited options for companies), and limited know-how for implementation of growth plans.

Through this operation, the EIB will provide much needed equity risk capital to local companies that operate across various economic sectors that are crucial for the development of the region. Access to finance and managerial advice are among the most critical barriers for the growth of companies in emerging countries. The Fund Manager has built a strong 20-year track record of investing and providing managerial advice in Africa.

Thanks to EIB, the Fund Manager is also in the process of incorporating a gender lens into its investment strategy and EIB´s contribution is considered key due to the Bank´s leadership in gender equality.

The EIB commitment is anticipated to support the fundraising and to catalyse other institutional investors' capital to the African private equity industry and represents a unique opportunity to co-invest and foster cooperation between the EIB and other DFIs.  

Objectives

The key objectives include private sector development, the creation of jobs and supporting local enterprises, including through digitalisation initiatives, across several economic sectors in Africa. The fund will focus on sectors aligned with the Global Gateway priorities. The operation will increase access to risk capital and to support the institutionalisation of local enterprises. The fund aims to invest in a diversified portfolio of companies, supporting the value creation in the underlying investees through a hands-on management approach enhanced by the EIB's Environmental and Social standards.

Comments

N/A

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

USD 75 million (EUR 70 million)

Total cost (Approximate amount)

USD 750 million (EUR 701 million)

Environmental aspects

The fund will operate in line with the EIB's Environmental and Social standards.

Procurement

The fund is expected to comply with EIB's procurement guidelines.

Status

Signed - 20/12/2024