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The African Development Bank (AfDB) has approved a $12.5 million equity investment in Alitheia Identity Fund (AIF), a private equity fund managed by Alitheia Identity Managers, which is a joint venture between Alitheia Capital Limited of Nigeria, and Identity Development Fund Managers of South Africa. The two companies are established women-owned fund management companies.

The investment was approved by the Board of Directors of AfDB, which met on December 17, 2015 in Abidjan. The private equity fund intends to raise $100 million to make equity investments in high-growth established SMEs with emphasis on women-led and/or women-managed SMEs in 10 African countries, Malawi, Lesotho, Swaziland, Botswana, Namibia, South Africa, Zambia, Zimbabwe, Ghana and Nigeria. AfDB’s equity investment will be part of the first closing of two closings.

Presenting the project to the Board, Director of the Financial Sector Development Department, Stefan Nalletamby, said, “Through the investments made over the life of this fund, it is expected that over 12,000 jobs will be created and over 50% of the jobs created will be permanent. Furthermore, more than 50% of the jobs created will be occupied by women and this investment will provide scarce medium to long-term capital to at least 30 indigenous SMEs.”

AIF is expected to yield financial returns in high-growth sectors such as agriculture, agro-processing, and manufacturing across targeted countries. It will provide capital of between $2-5 million to high potential mid-sized companies in target countries to transform them into local and regional market leaders.

AfDB’s Operations Vice President in charge of regional integration, infrastructure and private sector, Solomon Asamoah, said, “Accelerating women’s financial inclusion requires bold and sustained action to advance women’s economic opportunities and rights to ensure that they can meaningfully participate in the economy without undue constraints and barriers that limit their progress.”

Also commenting on the project was AfDB’s Special Envoy on Gender, Geraldine Fraser-Moleketi, who said, “The project has excellent gender effects that will arise from the increased opportunities for women as over two thirds of the companies to be supported by AIF are majority owned by women and new jobs created will be women dominated.”

The bank said it hopes to complement its existing initiatives to support African women and the development of private sector and financial markets on the continent. The AfDB supports investments that contribute to inclusive growth in Africa. The bank, through its investments, promotes women's access to risk capital and enhances the capacity of women fund managers in Africa.