Africa’s digital economy is positioned for significant expansion, and leading private equity firm Helios Investment Partners is at the forefront of this transformation.
With a new $750 million target for its latest fund, Helios Investors V (Helios V), the firm has secured substantial commitments from major development finance institutions, including the European Investment Bank (EIB) and the International Finance Corporation (IFC).
These investments signal growing international confidence in Africa’s tech-driven future and the potential of its rapidly evolving digital infrastructure.
Strategic Investment in Africa’s Digital Future
Helios V is set to focus on key industries driving Africa’s digital and economic transformation. These include digital infrastructure, financial services, and tech-enabled businesses such as logistics, healthcare, and education.
By prioritising sectors that enhance connectivity, financial inclusion, and access to essential services, the fund aims to catalyse sustainable economic growth across the continent.
The European Investment Bank has committed $75 million to Helios V, aligning with the EU-Africa Global Gateway Investment Package, which aims to accelerate digital and economic development through strategic investments.
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EIB Vice-President Ambroise Fayolle emphasised the fund’s role in driving “market-leading, value-creating, and socially responsible enterprises” that benefit both Africa and the European Union.
Similarly, the IFC is considering an investment of up to $75 million, alongside a potential $50 million co-investment envelope.
This move highlights the continued interest of global development finance institutions in supporting Africa’s private equity landscape, particularly in high-growth sectors expected to capitalise on demographic shifts and increasing digital adoption.
Investment Focus: Sectors Driving Africa’s Digital Economy
Helios V will concentrate on four core sectors that are fundamental to Africa’s ongoing technological and economic transformation:
- Digital Infrastructure: Investments in data centres, fibre-optic networks, and telecommunications towers to support Africa’s growing demand for internet connectivity and cloud computing services.
- Financial Services and Fintech: Supporting innovations in digital banking, payment systems, and financial management solutions to drive financial inclusion and improve economic efficiency.
- Tech-Enabled Business Services:Enhancing industries such as cloud computing, regulatory technology (RegTech), healthcare technology (HealthTech), and logistics technology (LogisticsTech), all of which contribute to increased productivity and service delivery.
- Consumer Non-Discretionary: Leveraging technology to improve access to essential services in food, healthcare, and education, ensuring affordability and broader reach.
With an anticipated average investment size of $70–80 million, Helios V will focus on high-growth businesses that have established a strong market presence or are on the path to rapid scalability.
The fund, based in Guernsey, plans to deploy 100% of its capital to companies primarily operating within Africa, reinforcing its commitment to the continent’s economic progress.
Commitment to ESG and Gender-Smart Investments
Beyond financial returns, Helios V integrates environmental, social, and governance (ESG) principles into its investment strategy. The fund has pledged to allocate at least 30% of its portfolio to companies that meet the EIB’s gender equality criteria.
Additionally, it has joined the 2X Global network, demonstrating a strong commitment to advancing gender-smart investments across its portfolio.
The EIB’s commitment of €232 million to African funds in the previous year, representing nearly half of its total fund investments, highlights the institution’s strategic emphasis on channelling private capital into Africa.
These investments play a critical role in unlocking the continent’s potential, driving job creation, and fostering innovation.
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A Catalyst for Africa’s Digital Transformation
The investment in Helios V is more than just capital allocation; it is a recognition of Africa’s potential as a global tech hub. As urbanisation accelerates and digital adoption expands, the need for robust infrastructure, financial technology, and digital services becomes more pressing.
Speaking at the fund’s announcement, EIB Vice-President Ambroise Fayolle emphasised the importance of private equity in Africa’s development, stating that the partnership with Helios will drive investments into enterprises that create lasting economic and social impact.
Similarly, South Africa’s Deputy Minister of Finance, David Masondo, welcomed the investment, highlighting its role in mobilising capital for high-impact sectors and strengthening Africa’s business environment.
The Road Ahead
As Africa continues its digital transformation, funds like Helios V, backed by international development finance institutions, will play a crucial role in shaping the continent’s future.
By addressing infrastructure gaps, enhancing financial inclusion, and supporting tech-enabled businesses, Helios V is set to drive innovation, generate employment, and contribute to Africa’s sustainable economic growth.
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