Mubadala Investment Company and French giant BPIfrance have joined forces to create a new co-investment company focusing on African private equity, with the goal of assisting high-growth African companies and SMEs. The two businesses have agreed to raise $416 million in private equity and venture capital funds and direct investments, with a focus on African startups.

Nicolas Dufourcq, CEO of Bpifrance, said, “We are excited to announce that we will begin collaborating with our long-term partner Mubadala in neighboring Africa, where Bpifrance has been operating for the past 20 years through a pioneering fund of funds program.”

Since the introduction of the French Emirati Fund in 2014 and the Innovation Partnership in 2017, BPIfrance and Mubadala have developed a solid partnership. The agreement to invest jointly in top-tier African private equity and venture capital funds follows the May 18 Summit on the Financing of African Economies, at which France and the UAE, along with 45 other nations and institutions, pledged to work together to achieve a post-Covid economic recovery in Africa, including through specialized support for entrepreneurs and SMEs.

Waleed Al Mokarrab Al Muhairi, deputy group CEO of Mubadala, expressed pleasure about the cooperation and expressed optimism that additional foreign entities will join the effort.

“We are more confident than ever of Africa's private sector's enormous potential and the critical role that African private equity will play in identifying and developing industrial and technology champions throughout the continent. We want to have additional foreign partners join us on this wonderful African adventure.

“Over the years, we have built a solid connection with Bpifrance and have successfully invested or committed EUR1.5 billion in over 15 ventures in France. We are thrilled to expand our collaboration into Africa, where we feel there is enormous untapped potential, and to invest alongside them in high-growth companies,” Waleed added.