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 per cent increase from the $23.4 million reported in 2023. The announcement, contained in its 2024 annual report, underscores FEDA’s rising role as a major player in Africa’s private capital and development finance landscape.
Established in 2019, FEDA was created to channel equity, quasi-equity, and private credit into African businesses and projects with long-term impact. By the end of 2024, the institution’s financial investments had grown to $573.8 million, with $410 million injected into new ventures across diverse sectors including infrastructure, technology, healthcare, and sports.
FEDA’s growing footprint is also reflected in its expanding membership. In 2024, Nigeria, Benin, Guinea-Bissau, Malawi, and the Gambia joined, bringing the total number of member states to 19.
Through a suite of specialised funds, FEDA backs businesses with scalable potential. Its flagship, the FEDA Direct Equity Fund I, has raised and committed $270 million so far, with a prominent investment in Arise Integrated Industrial Platforms (IIP), a Pan-African developer of industrial parks. In 2022, FEDA made an additional $85 million equity injection into Arise IIP. Beyond industrial projects, the fund has also backed innovative ventures, such as Team Drogba, the electric boat racing outfit spearheaded by Ivorian football legend Didier Drogba.
Complementing equity, FEDA has ventured into debt markets through the Africa Credit Opportunities Fund (ACOF). By early 2025, ACOF had mobilised $125 million in capital and commenced disbursements, offering flexible debt financing to African businesses. Among its most notable projects is the African Medical Centre of Excellence, envisioned as a landmark for healthcare delivery and research on the continent.
For startups and small businesses, the FEDA Venture Fund has earmarked $25 million for African SMEs. This is a significant intervention in a space where access to patient capital remains one of the biggest barriers for early-stage ventures. Looking ahead, the institution is preparing to launch a $150 million Africa Film Fund in 2025 — the first vehicle of its kind to support Africa’s booming creative industry, with Nollywood in particular focus.
FEDA also manages Libreville Africa Holdings Limited, a $366.8 million investment company with a diverse African portfolio. Libreville holds a five per cent equity stake in Nigeria’s Geregu Power Plc and a $31.3 million investment in Mauritania’s FMCG player TND SA.
The institution attracted $258.7 million in new capital in 2024, raising its total shareholder funds to $607 million. It also earned $20.8 million in service fees from its partnership with Arise IIP, strengthening its revenue base.
Ahmed Attout, AfDB’s Director of Financial Sector Development, described the initiative as a milestone in tackling one of Africa’s long-standing financial challenges. “This investment will unlock local currency financing for MSMEs, infrastructure, and other sectors, while addressing the root causes of debt distress that often arise from currency mismatches,” he said.
For Afreximbank, FEDA’s success signals a broader shift in Africa’s financial ecosystem — from traditional trade finance to long-term equity and private capital investments that can build resilient, sustainable growth engines across the continent.
