The Fund for Export Development in Africa (FEDA), the impact investment arm of the African Export-Import Bank (Afreximbank), closed 2024, reporting a net income of $40.3 million. The result marks a 72 per cent leap from the $23.4 million posted in 2023. This is according to its 2024 annual report.
This record profit also underlies FEDA’s growing influence as one of Africa’s emerging powerhouses in private capital and development finance.
At the heart of Afreximbank’s strategy to push Africa’s growth beyond trade finance, FEDA was established in 2019. Its mandate is to channel equity, quasi-equity, and private credit into businesses and projects that have a long-term impact. By the end of 2024, its financial investments had swelled to $573.8 million, with $410 million deployed into new ventures across multiple sectors. These projects range from infrastructure to technology, healthcare, and even sports.
In 2024, Nigeria, alongside Benin, Guinea-Bissau, Malawi, and the Gambia, joined FEDA, bringing the number of member states to 19.
To achieve this, FEDA operates through a suite of specialised funds. The flagship FEDA Direct Equity Fund I has raised and committed $270 million so far, backing businesses with scalable potential. Its most prominent deal is with Arise Integrated Industrial Platforms (IIP), a Pan-African developer of industrial parks.
In 2022, FEDA made an additional $85 million equity contribution to Arise IIP. The fund has also backed less conventional plays, including a stake in Team Drogba, the electric boat racing outfit spearheaded by Ivorian football legend Didier Drogba.
Beyond equity, FEDA has turned to debt markets through its Africa Credit Opportunities Fund (ACOF), which has mobilised $125 million in capital and begun disbursements by early 2025. Unlike its equity counterpart, ACOF is designed to deliver flexible debt financing to African businesses.
Its most high-profile backing so far is the African Medical Centre of Excellence project.
This initiative is envisioned as a landmark for healthcare delivery and research on the continent.
For startups and small businesses, FEDA’s Venture Fund has carved out $25 million in funding for African SMEs. Over the years, access to patient capital has been a problem for early-stage ventures.
The institution is preparing to launch a $150 million Africa Film Fund in 2025. This would be a first-of-its-kind vehicle to support Africa’s film and creative industries, with Nollywood in view.
FEDA also maintains Libreville Africa Holdings Limited, a $366.8 million investment vehicle with diverse African stakes. Libreville holds a five per cent equity stake in power-generating company Geregu Power Plc in Nigeria. In Mauritania, Libreville has a $31.3 million investment in FMCG player TND SA.
Backed by strong shareholder confidence, FEDA attracted an additional $258.7 million in fresh capital in 2024, lifting total shareholder funds to $607 million. The institution also earned $20.8 million in service fees from its partnership with Arise IIP, further solidifying its revenue base.
For Afreximbank, FEDA’s success underscores a broader shift in Africa’s financial landscape: moving from trade-focused lending toward long-term equity and private capital investments that create sustainable growth engines.
