Final close at $100 M announced by African gender lens investment fund Alitheia IDF
Alitheia IDF, Africa’s first women-led and women-focused private equity fund, has announced the closing of its $100 million funds, which it says is the continent’s largest gender-inclusive private equity fund.
Alitheia IDF invests in development-stage companies in Nigeria, South Africa, Ghana, Zimbabwe, Lesotho, and Zambia, under the leadership of principal partners Polo Leteka and Tokunboh Ishmael.
The fund’s mission is to close the US $42 billion investment gap between male and female entrepreneurs, therefore boosting African women’s economic power as producers, distributors, and consumers.
The fund began carrying out its purpose in 2021 by leading investment rounds in five women-led businesses: Jetstream Africa (Ghana), ReelFruit (Nigeria), SKLD (previously SchoolKits, Nigeria), AV Light Steel (South Africa), and Chika’s Food (Nigeria).
The fund’s closing investment of US $100 million, according to Alitheia IDF, makes it the largest of its kind in Africa. The European Investment Bank (EIB) joined as the closing investor, contributing US $24.6 million.
Women-owned enterprises, according to EIB vice-president Thomas stros, continue to struggle to get capital despite their demonstrated performance.
“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 percent 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 a 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.”
“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 Sub-Saharan Africa’s economy. The EIB’s investment in Alitheia IDF is part of our SheInvest initiative seeking to mobilise EUR2 billion of investment to boost gender equality and female economic empowerment across the African continent. I truly believe that gender equality makes societies stronger,” he said.
