UAE & French giants to invest $400m+ in Africa

BPIfrance and Mubadala Investment Company have finalized a deal that would see both giants partnering to invest over US$400m in private equities within the regions of Africa.

During the 13th session of the UAE-France Strategic Dialogue, both firms agreed on a capital deployment up to EUR350 million (US$416m) via funds and direct private equity and venture capital investments. The goal is to support startups, SMEs, and mid-caps in Africa that have displayed the potential to grow big at a fast pace.

The solid partnership that exists between Bpifrance and Mubadala can be traced back to the establishment of the French Emirati Fund in 2014 and the Innovation Partnership in 2017.

So far, the partners have recorded laudable investment feats, including EUR1 billion jointly invested in French firms and a funding commitment of EUR1 billion made by Mubadala towards the Lac1 Fund, which was set up by BPIfrance to back and fund listed French multinationals.

The funds intended for Africa will be disbursed through trusted private equity and venture capital funds. The credibility of these funds and fund managers and the track record of their investments within the region and across various countries will be a key deciding factor.

The initiative comes on the heels of commitments made by governments of France and the UAE, in partnership with 45 other nations and institutions, to provide the support needed for a smooth post-Covid economic recovery in Africa.