British International Investment (BII), the UK’s development finance institution, has invested $20 million in the Alterra Africa Accelerator Fund (AAA Fund) to boost Africa’s growing tech ecosystem.
With support from Nigerian billionaire Aliko Dangote, this investment pushes the Alterra fund closer to its $500 million goal to fuel high-growth industries across africa.
Alterra manages the AAA Fund, focusing on boosting financial access, driving digital growth, and creating jobs across Africa. While it supports businesses throughout the continent, it places special attention on East and Southern Africa, where digital economies are expanding rapidly.
Since its first funding round last year, the fund has attracted $140 million from a mix of global and African investors. Some of the key backers include major development finance institutions, banks, and private investors who see strong potential in Africa’s growing technology and business sectors.
Carlyle Africa and Emerging Capital Partners (ECP) merged to form Alterra, combining decades of experience in private equity investment across Africa. With offices in Johannesburg, Nairobi, and Mauritius, the firm understands local markets and helps businesses scale across the continent.
Why the UK is Investing in Alterra
BII’s investment in AAA Fund aligns with its mission to drive economic development across Africa by backing businesses that foster innovation, sustainability, and inclusivity.
“Our investment in the AAA Fund ensures our capital reaches a diverse range of companies, fostering productive, sustainable, and inclusive economic development. We are delighted to work with Alterra’s experienced team to advance our mission of empowering businesses that drive growth in Africa’s emerging economies.” said Sara Taylor, Head of PE Funds and Co-Investments at BII.
Alterra is focusing on high-impact sectors, including, telecommunications, technology & digital services, business services, consumer & retail industries
Genevieve Sangudi, Partner at Alterra, welcomed BII’s investment, saying:
“BII’s commitment adds invaluable credibility and resources to our strategy of advancing sustainable and inclusive growth in Africa. This will accelerate our efforts to invest in transformative businesses across the continent, particularly in high-growth and high-impact sectors.”
Why Africa is an Investment Hotspot
Alterra sees Africa’s economy as a great place to invest, especially as businesses use technology to grow and work more efficiently.
“This is an excellent time to put money to work in Africa as many of the current macro themes provide attractive potential investment opportunities,” said Sangudi.
“For example, African corporates are using technology transformation to improve efficiency, reduce costs, increase output, and achieve greater scale, particularly in sectors such as logistics and financial services.”
A Commitment to Women’s Economic Empowerment
The Alterra Africa Accelerator Fund also qualifies as a “2X Challenge” investment, which means it actively promotes gender-lens investing. This includes, women in leadership positions, financial support for female entrepreneurs, and opportunities for women in business & employment.
This focus aligns with the rise of impact investors supporting women’s economic empowerment as a key part of sustainable development.
