AfricaGrow Fund

AfricaGrow is a fund of funds domiciled in Germany, established to support small and medium-sized enterprises (SMEs) and start-ups across the African continent. The fund achieves this by investing in Pan-African regional and country-specific private equity and venture capital funds that have proven track records and capacities. Its mission is to catalyze the emerging and dynamic African SME and start-up ecosystem, thereby contributing to job creation, income generation, and the promotion of sustainable economic growth. As a legally independent entity, AfricaGrow serves as a central instrument of the Compact with Africa (CwA) initiative, launched in 2017 under the German G20 presidency. The fund is managed by Allianz Global Investors, a leading active asset manager with over 700 investment professionals in 24 offices worldwide.

The investment strategy of AfricaGrow focuses on financing up to 200 innovative SMEs and start-ups in reform-oriented African countries by 2030. This is achieved through investments in local funds, all with the objective of promoting sustainable economic and social development. It is estimated that more than 25,000 new jobs can be created by 2030 as a result of these investments. The fund targets market-oriented private funds with experienced, entrepreneurially-driven teams that have a proven track record in the private sector. AfricaGrow does not make direct investments into single companies but rather invests in funds that, in turn, invest in these companies.

AfricaGrow's portfolio includes investments in various sectors such as education, healthcare, mobility, e-commerce, finance, clean energy, and technology. The fund employs a proprietary development assessment tool to measure the positive social and economic impact of its investments, focusing on areas like income security, job creation, and environmental stewardship. By the end of 2021, four of its portfolio funds had created and sustained nearly 15,000 direct jobs, including 3,520 for women, and had paid over €83 million in wages and €11 million in corporate taxes. This underscores AfricaGrow's commitment to fostering sustainable development and economic growth across the African continent.