Summit Africa has announced the launch of its second private equity fund, Summit Private Equity Fund II (SPEF II), backed by a $20-million (R355m) anchor investment from British International Investment (BII), the United Kingdom’s development finance institution and impact investor.
British High Commissioner to South Africa, Antony Phillipson, highlighted the partnership’s significance, stating: “This is an important example of the growth and investment partnership between South Africa and the UK and our shared aspiration to boost growth through deeper cooperation on trade, investment and economic reform between our two countries, creating economic opportunities for people and communities that urgently need them.”
Summit Africa’s investment lead and partner, Nthabiseng Thema, described the investment as a vote of confidence in the firm’s strategy. “This anchor investment demonstrates the strength of Summit Africa’s investment platform, our team, our fully integrated ESG and impact strategy, and our ability to work actively with portfolio companies to meet their financial and social impact objectives,” she said.
SPEF II aims to raise an additional R400m to R500m from local and international institutional investors before deploying capital. The fund has a target size of R2.5 billion. It will focus on small-to-mid market companies in financial services and information and communication technology. The goal is to drive financial and digital inclusion, job creation, transformation, and diversity across South Africa and the broader Southern African region. Additionally, the fund will target food security as a key investment sector.
According to the Department of Forestry, Fisheries and the Environment, South Africa wastes about 11.1 million tonnes of food annually, with 68% of this waste stemming from inadequate processing, packaging, storage, and distribution. This issue is expected to intensify as South Africa’s population grows by an estimated four million people by 2030.
At least 15% of the fund is earmarked for investments that directly or indirectly benefit low-income South Africans classified under Living Standards Measure (LSM) 1–6.
The launch follows the success of Summit’s first private equity fund, SPEF I, which has deployed $115m since 2019 and has delivered significant financial and social impact. Investments from SPEF I have helped expand healthcare facilities in rural, peri-urban, and township areas, improve higher education and skills training for school leavers, and enhance financial inclusion for individuals and small businesses.
According to Summit Africa, since its inception, SPEF I has:
- Extended R678 million in funding to over 6 200 small, medium, and micro-sized enterprises (SMMEs).
- Provided critical healthcare services to more than 31 050 patients in underserved areas.
- Delivered tertiary education and training to about 2 000 learners annually, most of whom are from previously disadvantaged backgrounds.
BII chief executive Leslie Maasdorp underscored the importance of working with impact-driven fund managers such as Summit Africa. “With its proven track record for the first fund, we are delighted to anchor Summit’s second private equity fund to double down support to SMEs in key sectors that improve the livelihoods of people in South Africa and the Southern African region,” he said.
SPEF II is eligible for recognition as a 2X Investment under the 2X Framework, which promotes opportunities for women in employment, leadership, and financial access.
BII’s investment in the fund also reinforces its commitment to increasing capital access for black-owned and black-led businesses in Africa, which often face greater funding challenges.
