2024 was a challenging year for private capital investors across the world. Despite the global macroeconomic headwinds, AVCA data shows that African fundraising and dealmaking were resilient last year. For example, while most regions in the world saw falls in deal volumes, there was an 8% increase on the numbers of deals made on the continent.
Verod, a leading investor in businesses across West Africa, contributed to this total. In 2024, Verod backed three exciting companies: i-Fitness, the fastest-growing gym chain West Africa; Prime Pharmacy, a retail pharmacy chain increasing access to essential medical products in Ghana; and Moniepoint, which supports financial inclusion for SMEs and individuals in Nigeria and processes over 1 billion transactions every month.
Investing in impactful businesses such as these is essential in achieving the UN Sustainable Development Goals (SDGs) and filling the staggering $1.3 trillion annual financing gap for meeting the SDGs.
In its Impact Report 2024, Verod shares the steps it is taking to support the Goals. The publication demonstrates tangible progress across its key areas of impact: gender equity, job quality and climate action.
Championing gender equity
A recent IFC study of 2,000 emerging market private equity and venture capital investments found that just 13% of the roughly $40 billion total went to female-led firms. Meanwhile, companies led by women received 35% less on average than their male-led counterparts.
Verod is actively addressing gender equity in its investments. In 2024, Verod’s Fund III became the first private equity fund globally to be awarded a ‘Best-in-Class’ 2X Global Certification – recognition of its leadership in advancing gender equity within the private capital ecosystem.
Verod also works with portfolio companies to enhance their approaches to gender. For example, with Medplus, Nigeria’s largest retail pharmacy chain, the Verod team developed and implemented a tailored gender action plan to help women develop their careers at the company. These initiatives resulted in increased professional development opportunities, alongside expanded training budgets.
Driving quality job creation
With Africa’s population predicted to double by 2070, it is vital that private capital investors focus on supporting quality jobs. This is especially true in Nigeria – a focus market for Verod – which is expected to become the world’s third most populated country over the next 25 years.
Verod continues to support its partner companies to implement initiatives that prioritise employee wellbeing, skills development and fair labour practices. In 2024, Verod launched its proprietary People Practice Handbook’ – an innovative tool designed to help businesses embed industry-specific best practices that elevate job quality.
Stepping up on climate
African countries are disproportionately affected by climate change – despite only being responsible for a fraction of global greenhouse gas emissions. With this in mind, businesses across the continent need to take steps to ensure they can respond to the climate crisis.
Verod aims to build climate resilient businesses that unlock low-carbon growth for sustainable development. In 2024, the firm ramped up its climate mitigation efforts by providing technical support to portfolio companies Emzor (a pharmaceutical manufacturer) and Pan African Towers (a telecoms infrastructure provider), enabling both to significantly reduce their carbon footprints. Climate action is now firmly integrated into Verod’s investment strategy.
Looking ahead
With the global macroeconomic tremors that began being felt in 2024 still persisting, Verod remains resolute in its mission to support long-term growth across Africa. The firm is preparing to launch Fund IV, which will represent a strategic expansion into the Francophone region. This next chapter will see Verod deepen its climate focus and strengthen collaborations with local investors to align capital with Africa’s most urgent development priorities.
“The need for sustainable impact in Africa is greater than ever, and we will continue to step up our efforts,” said Danladi Verheijen, Managing Partner at Verod. “We are committed to mobilising capital for impact and building a prosperous, inclusive and resilient future. There will be challenges ahead but our conviction has never been stronger.”
To learn more about Verod’s approach and read the Impact Report 2024