Summit Africa Kicks Off Second Private Equity Fund With USD 20M Boost From BII

In a bid set to accelerate financial inclusion, digital transformation, and food security in South Africa, Summit Africa, a South African-owned impact investment firm, has launched Summit Private Equity Fund II (SPEF II) to help drive financial inclusion, digital transformation, and sustainable food systems.

The new fund kicks off with a USD 20 M (ZAR 355 M) anchor investment from British International Investment (BII), the UK’s development finance institution and impact investor. This commitment comes as part of BII’s broader strategy to support high-impact investments in Africa, particularly those advancing inclusion, job creation, and sustainability.

The fund will invest in small-to-mid market companies across financial services, ICT, and food security—sectors that have a direct impact on South Africans’ daily lives. At least 15% of the fund is earmarked for businesses that directly or indirectly benefit South Africa’s low-income population (LSM 1–6), ensuring that its investments create meaningful social and economic change.

One of the biggest issues the fund hopes to address is South Africa’s growing food security crisis. While millions of people struggle to put food on the table, 11.1 million tonnes of food—one-third of the country’s total supply—is wasted annually, with 68% of that loss due to inefficiencies in processing, storage, and distribution. With South Africa’s population expected to grow by four million people by 2030, the need for sustainable food systems has never been more urgent. SPEF II is stepping in to help bridge the gap by backing businesses working to reduce food waste and improve food supply chains.

Beyond tackling food security, SPEF II has a strong commitment to inclusion. Summit Africa is positioning SPEF II as a 2X Challenge investment, meaning it will help advance opportunities for women in leadership, employment, and business ownership. And by backing black-owned and black-led businesses, it’s tackling another major issue—the funding gap that historically disadvantages black entrepreneurs in South Africa.

Meanwhile, Summit isn’t stopping at the initial USD 20 M investment—it plans to raise an additional USD 22 M (ZAR 400 M) to USD 27 M (ZAR 500 M) from local and international investors, with a target fund size of USD 136 M (ZAR 2.5 B) before capital deployment begins.

Summit Africa has already proven its ability to generate significant post-investment value through its first private equity fund. The launch of SPEF II builds on the success of its first private equity fund, which since 2019 has provided USD 37 M (ZAR 678 M) in funding to over 6,200 SMEs, expanded healthcare services to more than 31,000 patients, and funded tertiary education for 2,000 learners annually—many from previously disadvantaged backgrounds.

The new fund represents the next step in scaling this impact, ensuring that financial inclusion, digital innovation, and food security remain at the forefront of Southern Africa’s economic development.

Summit Partner Nthabiseng Thema called the investment a strong endorsement of Summit’s investment strategy and impact-driven approach. She highlighted that Summit’s integrated ESG and impact strategy ensures that investments not only yield strong financial returns but also contribute to South Africa’s broader economic transformation goals.

This sentiment was echoed by Najwah Allie-Edries, Head of the Jobs Fund, a National Treasury initiative that supported Summit’s first fund. She noted that the Jobs Fund remains committed to fostering economic growth and sustainable social impact through diverse investment strategies that promote inclusive leadership.

The timing of this fund launch coincides with Leslie Maasdorp’s first visit to South Africa as BII’s CEO, highlighting the UK’s commitment to strengthening investment ties with the country. British High Commissioner Antony Phillipson welcomed BII’s commitment, describing the investment as a key step in boosting financial inclusion, job creation, and food security.

With funding secured, a clear investment strategy, and a track record of delivering social and economic impact, Summit Africa’s latest fund is set to play a key role in shaping South Africa’s economic future—one business, one job, and one meal at a time.