The Fund for Export Development in Africa (FEDA), serving as the impact investment division of the African Export-Import Bank (Afreximbank), concluded 2024 with a net profit of $40.3 million. This figure represents a remarkable 72% increase compared to the $23.4 million recorded in 2023, as detailed in its 2024 annual report.
This unprecedented profitability highlights FEDA’s africa-fashion-week-london/” title=”The First Ever AI Powered Fashion Collection Debuts at … Fashion Week London”>expanding role as a key player in Africa’s private capital and development finance sectors.
Founded in 2019 as a core component of Afreximbank’s vision to extend Africa’s economic growth beyond traditional trade finance, FEDA’s mission is to inject equity, quasi-equity, and private credit into ventures and projects that promise lasting developmental impact. By the close of 2024, its total financial commitments had surged to $573.8 million, with $410 million allocated to new initiatives spanning infrastructure, technology, healthcare, and even the sports industry.
In 2024, FEDA welcomed Nigeria, Benin, Guinea-Bissau, Malawi, and the Gambia as new members, expanding its network to 19 African countries.
FEDA’s operations are structured around a portfolio of targeted funds. The flagship FEDA Direct Equity Fund I has successfully raised and invested $270 million, focusing on enterprises with significant growth potential. A standout investment is its partnership with Arise Integrated Industrial Platforms (IIP), a Pan-African industrial park developer.
In 2022, FEDA increased its equity stake in Arise IIP by $85 million. The fund has also ventured into unique sectors, including acquiring shares in Team Drogba, an electric boat racing team led by Ivorian football icon Didier Drogba.
Complementing its equity investments, FEDA has tapped into debt financing through the Africa Credit Opportunities Fund (ACOF), which has raised $125 million and commenced lending activities by early 2025. Unlike the equity fund, ACOF provides adaptable debt solutions tailored to African enterprises.
One of ACOF’s flagship projects is the African Medical Centre of Excellence, envisioned as a transformative hub for healthcare services and research across the continent.
For emerging startups and small enterprises, FEDA’s Venture Fund has earmarked $25 million to support African SMEs, addressing the persistent challenge of accessing patient capital in early-stage business development.
Looking ahead, FEDA plans to launch a groundbreaking $150 million Africa Film Fund in 2025, designed to bolster the continent’s creative industries, with a particular focus on Nollywood’s burgeoning film sector.
Additionally, FEDA manages Libreville Africa Holdings Limited, a $366.8 million diversified investment vehicle with stakes across Africa. Libreville holds a 5% equity interest in Nigeria’s Geregu Power Plc, a power generation company, and has invested $31.3 million in Mauritania’s fast-moving consumer goods firm TND SA.
Buoyed by robust shareholder trust, FEDA secured an extra $258.7 million in fresh capital during 2024, raising total shareholder equity to $607 million. The institution also generated $20.8 million in service fees through its collaboration with Arise IIP, reinforcing its revenue streams.
FEDA’s achievements reflect a significant evolution in Africa’s financial ecosystem, signaling a shift from trade-centric lending toward sustainable, long-term equity and private capital investments that drive enduring economic growth.
