SouthBridge Launches New Africa-focused Fund

The launch of SBNA by SouthBridge aligns with the belief that efficiency and technology will be crucial in opening up the banking system to the millions of unbanked people who deserve and need it.”

The financial sector remains critically important to Africa’s development and long-term capital, modernisation, and investor commitment are key to transforming one of the world’s most promising banking markets. Having recorded a substantial rate of return in recent years, the sector is poised to attract more flows and generate many more opportunities.

In line with this, SouthBridge Investments (SBI) – the Africa-focused investment arm of SouthBridge Group launched last year – and New African Capital Partners (NACP) this week unveiled a new joint venture – SBNA. It is meant to act as a “permanent capital fund” with the goal of attracting investors who take a long-term view on Africa.

SBNA will be focusing on digitalisation, inclusion, and sustainable finance. Specifically, the venture will directly invest in Africa’s future with long-term capital in the areas of fintech, the financial sector integration, and micro and meso-finance.

Meso-finance is a relatively new concept in the financing world and seeks to address the needs of the “missing middle” – small and medium-sized enterprises (SME).

Also Read: Africa Needs Pragmatic Free Market Policies to Attract Capital into Gas Markets

The launch of SBNA aligns with the long-term belief that efficiency and technology will be crucial in opening up the banking system to the millions of unbanked people who deserve and need it.

Africa has seen significant financial inclusion gains over the years, largely thanks to expanded digital financial services. In 2011 the level of financial inclusion in Sub-Saharan Africa was just over 23 percent. By 2017, it was almost 43 percent, with a significant increase coming from digital financial services, according to the World Bank’s Global Findex financial inclusion report.

While the share of adults in Sub-Saharan Africa with a financial institution account barely budged, the share with a mobile money account almost doubled to 21 percent. In every other region of the world, mobile money use is lower than 10 percent.

Also Read: Mastercard, MTN in Partnership to Expand Digital Payments Across Africa

To fulfill achieve its objective, SBNA will combine “African know-how, strong financial, banking and technology skills, experience and knowledge,” Southbridge said in a statement. “The joint venture will leverage this outstanding human capital and market knowledge to be a truly pan-African endeavor dedicated to Africa’s growth and integration.”

Charles Kié, CEO and co-founder of NACP, will head SBNA. His professional career has included top jobs at Citibank, Banque Atlantique, Ecobank, and AFC (Africa Finance Corporation), before co-founding New African in October 2018 with Paulo Gomes.

Meanwhile, Senior Partner Dr. Frannie Léautier heads SouthBridge Investments as its CEO. She has previously held senior leadership roles in prestigious international organizations such as the World Bank, African Development Bank, and Trade and Development Bank.

Subscribe to Notifications