Proparco Commits $15m to Capitalworks Fund for South African Businesses

French development finance institution Proparco has committed $15 million to Capitalworks IV, a private equity fund targeting $350 million to invest in mid-sized South African businesses. Managed by South African alternative asset manager Capitalworks, the fund will provide equity capital to companies with growth potential. Proparco expects its investment to support the creation of more than 2,150 jobs and help attract additional private investment into the businesses backed by the fund.

Capitalworks Targets Mid-Sized Businesses

Capitalworks IV will invest in established South African companies that have opportunities to expand their operations and grow their businesses.
The fund will provide equity financing alongside strategic support as companies develop. Its focus is on mid-sized businesses, which often require additional capital to expand production, enter new markets or strengthen their operations.
Capitalworks has invested across sectors including consumer goods, industrial services, logistics, retail and hospitality through its previous funds.
The investment manager was founded in 2006 and currently manages more than $1.6 billion for domestic and international investors. Its first three funds invested in more than 20 businesses, including Rhodes Food Group, Much Asphalt and Sovereign Foods.

Proparco Expands South Africa Investment

Proparco's $15 million commitment forms part of its strategy for supporting private-sector development in South Africa.
Johann Choux, Proparco's regional director for Southern Africa and the Indian Ocean, said mid-sized companies play an important role in economic growth and job creation.
The development finance institution expects its investment in Capitalworks IV to support employment while bringing further private capital into South African businesses.
Proparco is a subsidiary of Agence Française de Développement and has operated for more than 45 years. It provides financing to companies and financial institutions across more than 115 countries.
In 2025, Proparco signed more than 200 projects and committed €3.2 billion in financing.

Focus on South African Private Equity

The Capitalworks investment follows a separate €20 million Proparco commitment announced in June to support housing expansion in South Africa.
Backing Capitalworks IV gives Proparco exposure to a portfolio of South African mid-sized companies through an established local fund manager. For Capitalworks, the commitment adds development finance capital to a fund targeting $350 million in total commitments.
The investment comes as South African businesses continue to seek capital for expansion, while private equity managers look to raise larger pools of funding for companies with established operations and growth opportunities.