The European Investment Bank (EIB) is considering an investment of $85 million (€76 million) in Virunga Africa Fund II, a private equity fund targeting $500 million to invest in mid-sized and larger businesses across Africa.

The proposed investment, listed by the EIB on October 15, 2026, remains under appraisal and has not yet received final financing approval. The fund is managed by Admaius Capital Partners and is designed to provide long-term growth capital to established African companies seeking to expand their operations, strengthen their market positions and enter new markets.

The EIB’s proposed contribution would represent approximately 17% of the fund’s $500 million target if approved and if the fund reaches its fundraising goal. The institution has also indicated that the investment aligns with its broader strategy of supporting private-sector development and economic cooperation between Europe and Africa.

Which sectors will receive investment?

Virunga Africa Fund II will focus on five broad sectors: healthcare, fast-moving consumer goods (FMCG), education and training, digital infrastructure, and financial services.

Rather than concentrating on early-stage startups, the fund intends to invest in companies with established operations and potential for further growth. Its strategy includes taking majority stakes in businesses, while remaining open to significant minority investments where appropriate.

The targeted sectors reflect areas where additional capital could help businesses expand capacity, improve service delivery and reach more customers.

Healthcare: Investment could support the expansion of healthcare providers, medical services and related businesses.

Consumer goods: Companies may use growth capital to increase production, strengthen distribution and meet rising demand.

Education and vocational training: Businesses operating in education and skills development could receive funding to expand their reach and improve workforce training.

Digital infrastructure: Investment could support businesses involved in the infrastructure needed to deliver connectivity and technology-enabled services.

Financial services: Companies providing financial products and services could receive capital to expand operations and reach underserved customers.

The actual companies that will receive funding have not been announced.

North Africa expected to receive half of the fund

One notable feature of the investment strategy is the planned allocation of approximately 50% of the fund to North Africa, particularly markets within the European Union’s Southern Neighbourhood.

If Virunga Africa Fund II reaches its $500 million target and maintains that allocation, about $250 million could be directed towards North African investments. This is a target allocation, not a confirmation that the money has already been committed to specific businesses or countries.

The fund will also pursue opportunities elsewhere on the continent. Information disclosed to the International Finance Corporation (IFC) identifies Egypt, Kenya, Morocco, Rwanda and South Africa among its expected primary focus markets, although the final portfolio will depend on investment decisions and available opportunities.

The North African allocation also reflects the EIB’s interest in strengthening economic ties between the region and Europe, including opportunities for trade and cross-border business development.

How the fund plans to invest

Virunga Africa Fund II is targeting a portfolio of approximately 10 to 12 companies, with proposed investment sizes ranging from $15 million to $50 million per company, according to information disclosed to the IFC.

Its growth-equity approach is intended to provide patient capital to businesses that may have difficulty securing enough financing through traditional lending. Unlike a conventional loan, equity investment gives the fund an ownership stake in a company, allowing it to participate in the business’s long-term performance.

The fund manager also expects to work actively with portfolio companies on business development, governance and operational improvements. The objective is to help investee companies scale sustainably, strengthen their resilience and create jobs.

However, investment outcomes will depend on the performance of the companies selected, the terms of each deal and the fund’s ability to raise and deploy its targeted capital.

EIB is not the only development finance institution interested

The EIB’s proposed participation follows an earlier disclosure by the IFC, which is considering an equity investment of up to $25 million in Virunga Africa Fund II, alongside a co-investment envelope of up to $10 million.

These are separate proposed financing arrangements, and neither should be treated as proof that the fund has already secured its full $500 million target. The participation of development finance institutions can, however, help attract additional investors and support fundraising.

Virunga Africa Fund II is the successor to Virunga Africa Fund I, a $280 million fund managed by Admaius Capital Partners that has invested in eight companies, according to the IFC’s project disclosure.

The second fund is intended to build on that strategy while expanding access to growth capital for mid-sized and larger African businesses.

What this could mean for African businesses

Access to long-term financing remains important for businesses that have moved beyond the startup stage but need substantial capital to expand. Funding can help companies open new facilities, develop products, strengthen distribution networks or enter additional markets.

A fund of Virunga Africa II’s targeted size could support several sizeable investments across multiple sectors. But its eventual economic impact will depend on successful fundraising, the quality of the businesses selected and whether the capital translates into sustainable growth and jobs.

For African companies, the opportunity is also selective: this is not a general grant programme or an open application scheme for every startup. The fund is targeting established businesses that fit its sector, size and investment criteria.

The proposed EIB investment is a signal of continued institutional interest in financing established African businesses, particularly in sectors linked to healthcare, digital infrastructure, education and financial services.

The key milestone to watch is whether the EIB’s proposal receives approval and how much capital Virunga Africa Fund II ultimately raises. The fund’s targeted North African allocation will also be worth monitoring, alongside the countries and companies that eventually enter its portfolio.

For now, the $85 million figure represents a proposed investment—not money confirmed as disbursed.