The Fund for Export Development in Africa (FEDA), the impact investment arm of the African Export-Import Bank (Afreximbank), closed 2024 with a net income of $40.3 million, marking a 72% increase from the $23.4 million reported in 2023, according to its 2024 annual report.
Established in 2019, FEDA’s mandate is to channel equity, quasi-equity, and private credit into businesses and projects that generate long-term impact.
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By the end of 2024, its financial investments totaled $573.8 million, with $410 million deployed to new ventures across sectors such as infrastructure, technology, healthcare, and sports. Nigeria, Benin, Guinea-Bissau, Malawi, and the Gambia joined FEDA in 2024, increasing member states to 19 as cited in BusinessDays report.
FEDA operates through specialized funds:
- FEDA Direct Equity Fund I: Raised $270 million, supporting scalable businesses including Arise Integrated Industrial Platforms (IIP).
- Africa Credit Opportunities Fund (ACOF): Mobilized $125 million in debt financing, supporting initiatives like the African Medical Centre of Excellence.
- Venture Fund: Allocated $25 million to early-stage African SMEs.
Looking ahead, FEDA plans to launch a $150 million Africa Film Fund in 2025, aimed at supporting Africa’s creative industries, particularly Nollywood.
Its investment vehicle, Libreville Africa Holdings Limited, holds $366.8 million in diverse stakes across the continent, including a 5% stake in Nigeria’s Geregu Power Plc and $31.3 million in Mauritania’s FMCG company, TND SA.
The strong performance also attracted $258.7 million in fresh capital, boosting total shareholder funds to $607 million, alongside $20.8 million in service fees from partnerships such as Arise IIP.
FEDA’s success reflects a shift in Africa’s financial landscape from trade-focused lending to long-term equity and private capital investment that drives sustainable growth.
Image Credit: IBusinessDay
