Summit Africa, a black-owned investment manager, has launched its second private equity fund, Summit’s Private Equity Fund II (SPEF II), with a $20 million anchor commitment from British International Investment (BII), the UK’s development finance institution. The fund, targeting a total of R2.5 billion, will channel capital into small-to-mid market companies across South Africa and the Southern African region, prioritising financial and digital inclusion, job creation, diversity, and food security. With an initial anchor of $20 million (approximately R355 million), SPEF II plans to raise an additional R400 million to R500 million before deploying investments.
The fund builds on the success of Summit’s first private equity fund, which since 2019 has disbursed R678 million to over 6,200 small and medium enterprises (SMEs), delivered healthcare to 31,050 patients in underserved areas, and provided affordable education to 2,000 learners annually, mostly from disadvantaged backgrounds. SPEF II will target financial services and ICT sectors while adding food security as a new focus, addressing South Africa’s annual loss of 11.1 million tonnes of food due to inefficiencies in processing, packaging, storage, and distribution. At least 15% of the fund will support low-income populations, classified under Living Standards Measure 1-6.
Antony Phillipson, British High Commissioner to South Africa, said: “I am delighted that BII is making this investment in Summit Africa which will help to drive financial and digital inclusion, diversity, and food security. 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.”
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Leslie Maasdorp, BII CEO, who marked his first South Africa visit since taking the role with this announcement, added: “Working with impact-aligned fund managers like Summit is important to help achieve our goal to deliver development impacts at scale. 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.”
Nthabiseng Thema, SPEF II’s Investment Lead and Partner, stated: “The Fund is grateful for the support and commitment received from BII. 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. This is also a vote of confidence in South Africa and the Southern Africa region as an investment destination, noting the Presidential Investment drive to mobilise R2 trillion worth of investments in South Africa over the next five years.”
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Najwah Allie-Edries, Head of the Jobs Fund, which backed Summit’s first fund, commented: “The Jobs Fund is proud to have supported Summit Africa in its mission to raise capital aimed at fostering economic growth and sustainable social impact across South Africa. With an unwavering commitment to transforming the financial landscape, the Jobs Fund recognises the crucial role that diverse investment strategies and inclusive leadership play in addressing the socio-economic challenges faced by our country.”
Eligible under the 2X Framework, SPEF II will advance opportunities for women in employment, leadership, and finance access. BII’s investment also reflects its pledge to bolster Black-owned businesses in Africa, tackling persistent capital access gaps. With a proven model, SPEF II aims to amplify its predecessor’s impact across the region.
