IFC Considers $75M Investment in Helios V to Accelerate Digital Innovation

Tope Lawani, Helios Investment Partners Co-Founder & Managing Partner

Pan-African growth capital firm Helios Investment Partners has secured significant backing from two major development finance institutions (DFIs), the European Investment Bank (EIB) and, potentially, the International Finance Corporation (IFC), for its latest fund, Helios Investors V (Helios V). The fund, targeting a total raise of $750m, will focus on capitalising on the expanding technology sector across the African continent, with a particular emphasis on digital infrastructure, financial services and tech-enabled businesses.

The IFC is currently considering an investment of up to $75m in Helios V, alongside a possible $50m co-investment envelope, according to project documents. This proposed investment complements the EIB Global’s investment of $75m, which was announced at the recent Finance in Common Summit in Cape Town. The combined engagement from these institutions highlights the increasing recognition of Africa’s tech sector as a compelling investment destination, offering both commercial opportunities and developmental impact.

Helios V will be managed by Helios Investment Partners, a London-headquartered firm established in 2004 by Babatunde Soyoye and Tope Lawani. Helios, which focuses exclusively on African private equity and manages over $3 billion in assets, is strategically positioning Fund V to leverage the convergence of technological innovation and Africa’s demographic growth coupled with rapid urbanisation.

The fund’s investment strategy is focused on 10–12 companies across four core sectors considered vital for Africa’s digital evolution:

• Digital Infrastructure: encompassing data centres, fibre optic networks, and telecommunications towers — the foundational elements for a robust digital economy.
• Financial Services and Financial Technology (Fintech): including bank technology, payment systems, and financial management software, with the aim of broadening financial inclusion and improving efficiency.
• Tech-Enabled Business Services: spanning cloud computing, regulatory technology (RegTech), healthcare technology (HealthTech), and logistics technology (LogisticsTech), designed to enhance productivity and service delivery across diverse industries.
• Consumer Non-Discretionary: investments in sectors such as food and beverage, healthcare, and education, utilising technology to improve access and affordability of essential consumer goods and services.

The anticipated average investment size for Helios V is between $70–80m, suggesting a focus on growth equity investments in well-established or rapidly growing businesses. The fund is established in Guernsey, a recognised jurisdiction for private equity funds, and plans to deploy up to 100% of its capital in companies primarily operating and domiciled in Africa.

The involvement of the IFC and EIB Global is particularly significant. For the IFC, the potential investment aligns with its overarching mission to stimulate private sector development in emerging markets and encourage technological progress. Similarly, the EIB’s investment is framed within the “Team Europe” initiative and directly supports the EU-Africa Global Gateway Investment Package, a programme intended to strengthen digital and economic connections between the two continents.

Speaking at the fund announcement, EIB Vice-President Ambroise Fayolle cited Helios’s two-decade history in Africa, its extensive network, and local market knowledge as crucial factors in the EIB’s decision to invest. He underscored the alignment with the Global Gateway priorities and the potential for “mutual benefit for Africa and the European Union” through investments in “market-leading, value-creating and socially responsible enterprises.”

David Masondo, South Africa’s Deputy Minister of Finance, also welcomed the EIB’s investment, emphasising its importance in “mobilising capital for high-impact sectors” and reinforcing “business collaboration” with the continent. His comments reiterate the critical enabling role of private capital, including private equity, in driving economic advancement and progress across Africa.

Beyond purely financial objectives, Helios V has also committed to integrating environmental, social, and governance (ESG) principles into its investment strategy. Notably, the fund has pledged to allocate at least 30% of its portfolio to companies that meet the EIB’s gender equality criteria and has become a member of the 2X Global network, demonstrating a dedication to promoting gender-smart investments.

The backing of Helios V by the IFC and EIB signals a sustained appetite from major DFIs to allocate capital to African private equity, especially in sectors positioned to capitalise on the continent’s demographic advantages and accelerating digital integration. EIB Global alone invested €232 million in African funds in the previous year, representing almost half of its total fund investments, indicating a strategic emphasis on catalysing private capital flows to the continent.

As Africa advances towards digital transformation and seeks to address its infrastructure and service deficits, funds such as Helios V, underpinned by institutional capital and development finance expertise, are expected to play a vital role in driving innovation, generating employment, and fostering sustainable economic expansion across the continent. The performance of Helios V and similar initiatives will be closely monitored as indicators of the evolving African tech investment landscape and its capacity to deliver impactful returns for both investors and the continent’s developmental journey.

Source: Launch Base Africa