Quick Summary: Summit Africa has launched Summit Private Equity Fund II (SPEF II) with a $20 million investment from British International Investment (BII). The fund targets mid-market companies in financial services, ICT, and food security to foster economic growth and inclusion. Summit Africa aims to raise additional capital to reach its $136 million target.
Summit Africa, a leading South African fund manager, has officially launched its Summit Private Equity Fund II (SPEF II), receiving a significant anchor investment of $20 million from British International Investment (BII). BII, the UK’s development finance institution and impact investor, is providing this support to drive economic growth and social impact across Southern Africa.
Investment Focus: Driving Financial and Digital Inclusion
SPEF II is strategically designed to invest in small to mid-market companies within the financial services and information and communication technology (ICT) sectors. The fund aims to:
- Promote financial and digital inclusion
- Foster job creation
- Enhance transformation and diversity in South Africa and the broader Southern African region
Additionally, food security has been identified as a key sector for investment, aligning with broader economic and social development goals.
Fundraising and Growth Ambitions
Summit Africa plans to raise an additional ZAR 400 million to ZAR 500 million (approximately $21.7 million to $27.2 million) from local and international institutional investors. The fund has set a target size of ZAR 2.5 billion (around $136 million) to support its mission of impactful investing.
BII’s Support and Commitment to Impact Investing
Leslie Maasdorp, CEO of BII, emphasized the importance of supporting impact-driven fund managers like Summit Africa.
“Working with impact-aligned fund managers like Summit is crucial to achieving our goal of delivering development impacts at scale. With its proven track record from the first fund, we are delighted to anchor Summit’s second private equity fund, reinforcing our support for SMEs in key sectors that enhance the livelihoods of people in South Africa and the Southern African region.”
Confidence in South Africa’s Investment Potential
Nthabiseng Thema, Summit Africa’s investment lead and partner, expressed gratitude for BII’s backing and confidence in the fund’s impact-driven approach.
“This anchor investment highlights the strength of Summit Africa’s investment platform, our dedicated team, our comprehensive ESG and impact strategy, and our ability to actively collaborate with portfolio companies to achieve financial and social impact goals. It also represents a strong vote of confidence in South Africa and the broader Southern African region as a viable investment destination.”
The fund’s launch aligns with South Africa’s Presidential Investment Drive, which aims to mobilize R2 trillion in investments over the next five years. With strong institutional support and a clear impact strategy, Summit Africa’s SPEF II is well-positioned to drive meaningful change and sustainable growth in the region.
