The Fund for Export Development in Africa (“FEDA”), the impact investment arm of the African Export-Import Bank (“Afreximbank”), set up to support intra-African trade growth, value-add export development and industrialization, is pleased to announce its first close of $670 million across its four fund strategies.
“Of the $670 million raised, $270 million is earmarked for FEDA Direct Equity Fund I, which will provide equity and quasi-equity financing to businesses aligned with FEDA’s mandate.
“$250 million is allocated to the Strategic Initiatives Fund, a proprietary fund established by Afreximbank to implement landmark and high impact greenfield investments in sectors critical to the growth of intra-African trade and value-added export development across the African Continent.
“The third strategy involves the implementation of a private credit fund, Africa Credit Opportunities Fund, L.P. (“ACOF”), jointly sponsored by FEDA and Gateway Partners Group with $125 million committed. ACOF will invest in credit instruments to support trade enablement and growth in Africa, “it said in a statement.
Commenting, President and Chairman of Afreximbank, Prof. Benedict Oramah, said: “We are very pleased with this first close which is a first step in the financing of the equity gap in the trade sector in Africa. FEDA fund strategies will also facilitate and increase foreign direct investment in the trade and export sectors by attracting leading institutions with a keen interest in Africa’s development.”
