News

21 July 2021

IFU to invest in Pan-African Investment Fund

IFU has decided to invest USD 15m in ADP III, which is a sector agnostic investment fund with a pan-African focus advised by Development Partners International (DPI). The fund has attracted investments from several Development Finance Institutions (DFI) with a common mission of creating strong development impact in their investments.

Following the corona pandemic there is a strong need for building back better and greener. This is not least the case in Africa where one of the many consequences is a negative development in capital inflows. The fund ADP III is aiming to invest USD 40 – 120 million in 8 – 14 companies and will thus provide a solid contribution to the post covid-19 recovery. IFU has approved an investment of USD 15m in ADP III.

– Impact investments in Africa are a high priority for IFU, and with our investment in ADP III we participate alongside several other DFIs in easing the negative effects of the pandemic across the African continent, says IFU’s Chief Investment Officer Lars Krogsgaard.

Strong focus on impact

ADP III is the third investment fund advised by DPI, which has a strong track record of creating impact through investing in African companies. As a signatory to the UN PRI (United Nations’ Principles for Responsible Investment) and to the Operating Principles for Impact Management, DPI promotes high ESG and Impact standards and seeks to contribute to the UN Sustainable Development Goals.

The fund is sector agnostic with a preferred focus on companies creating access to essential goods and services for example within health services, food and agribusiness as well as institutions that promote financial inclusion. This is in line with IFU’s impact priorities of creating just and inclusive societies and the funds sector focus on healthy lives, healthy foods and financial inclusion.

ADP III is investing in health company

One of ADP III’s recent investments is in a platform that combines Adwia Pharmaceuticals, an Egyptian generic drugs manufacturer, and Celon Laboratories Pvt, an Indian oncology and critical care specialist. The platform will leverage its manufacturing and R&D centre of excellence in India to strengthen its local manufacturing operations in Africa, while capturing synergies from centralised supply chain management and business development. The aim is to generate significant cost savings for healthcare providers across Africa and broaden the range of therapeutics available in underserved markets

Supports the empowerment of women

ADP III has a strong focus on integrating opportunities for women in their investments and was selected as the first flagship fund in Africa by the 2X challenge, which is a joint DFI initiative to invest in empowerment of women.

– We are looking forward to taking part in investments with high impact that support the global development goals and have specific focus on promoting economic opportunities for women, which is a high priority for IFU as part of the 2X challenge, says Lars Krogsgaard.