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Swedfund makes follow-on investment in ADP III

Anna Lyudvig
Dec. 23, 2020, 12:15 a.m.
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Swedfund has announced an additional $10m investment in African Development Partners (ADP) III to further support the development of the private sector in Africa.

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Swedfund has announced an additional $10m investment in African Development Partners (ADP) III to further support the development of the private sector in Africa.

The fund will contribute to significant social development by creating new jobs and tax revenues through its investments across the African continent.

Maria Håkansson, CEO at Swedfund, said: “The Covid-19 pandemic has made fundraising more difficult for private equity funds overall, and Swedfund is supporting ADP III because we believe in a long-term commitment.”

“ADP III is a proven efficient channel for us to create new jobs – which is crucial right now in developing countries, due to the Covid-19 pandemic. Supporting the development of larger companies is key for a functioning business ecosystem and a private sector growth, especially now in the light of the pandemic,” she said.

ADP III exercises active ownership with a clear focus on ESG (Environmental, Social, Governance) and impact creation in areas such as women’s economic empowerment, growth of decent jobs, access to essential products and services and local economic development.

ADP III’s primary impact is expected on stimulating local economies, by supporting growth of institutionalised, high-performing companies in the private sector that will generate growth in decent jobs, tax income, access to essential products and services, in relevant sectors such as Information and Communication Technology, pharma and agri/food processing. 

In 2019, Swedfund committed $15m to ADP III, which is the successor fund of the earlier Swedfund-backed ADP II.

According to Swedfund, as a DFI it has a key role to play particularly during the Covid-19 pandemic, in providing this additional capital to further enable ADP III to reach its target fund size and to ensure that the Fund’s commercial returns and impact targets can be reached.

Swedfund together with other 2X-committed DFIs have signed a MOU with DPI to commit ADP III as a 2X Flagship fund.

2X Flagship funds is a new initiative of the 2X Challenge - a multilateral initiative launched by the DFIs of the G7 countries, with the objective of mobilising $3bn to support projects that empower women and enhance their economic participation. Vehicles awarded status as 2X Flagship Funds are established, high-performing private equity funds, focused on emerging markets, that have committed to investing with a gender lens using the 2X criteria.

ADP III is the first fund to be recognised as a 2X flagship fund.

Development Partners International (DPI), the manager behind ADP, has a proven track record of driving impact, enabled by the focus on private sector development and by having their ESG and Impact agenda integrated in their investment strategy.

 

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