French development finance institution Proparco has committed $15 million to Capitalworks IV, a South Africa-focused private equity fund managed by Capitalworks, as it steps up support for mid-sized businesses in one of Africa’s largest economies.

The investment will give Capitalworks IV more capital to invest in growing South African companies, with a focus on businesses that can expand operations, create jobs and strengthen their ability to compete.

For Proparco, the deal is also part of a broader effort to deepen local financial markets by backing established African fund managers. Capitalworks IV is expected to provide financing and strategic support to mid-sized companies, helping them expand while building more resilient businesses.

Focus on South African businesses

Capitalworks IV is targeting total commitments of $350 million, or about R5.6 billion. The fund will invest primarily in South African companies with growth potential, providing equity capital and support as they scale.

Proparco expects the investment to help create more than 2,150 jobs while attracting additional private capital into the companies backed by the fund.

“South Africa has one of the continent’s most dynamic private sectors, with mid-sized companies playing a vital role in driving economic growth and job creation,” Johann Choux, Proparco’s regional director for Southern Africa and the Indian Ocean, said.

By investing in Capitalworks IV, Proparco is supporting a local fund manager with experience helping businesses expand, strengthen their operations and withstand economic pressures, Choux said.

The investment is consistent with Proparco’s 2023-2027 strategy, which identifies South Africa as a key market and seeks to support private-sector companies capable of contributing to long-term economic growth.

Capitalworks expands private equity platform

Capitalworks IV builds on Capitalworks’ two-decade investment history in emerging markets. Through its first three private equity funds, the firm has invested in more than 20 businesses, including Rhodes Food Group, Much Asphalt, Peregrine Holdings, Robertson and Caine and Sovereign Foods.

Founded in 2006, Capitalworks is an independent alternative asset manager that invests across emerging markets and industries. The firm manages more than $1.6 billion for domestic and international investors.

Proparco expands support for South Africa

Proparco, a subsidiary of France’s Agence Française de Développement, has supported private companies and financial institutions for more than 45 years. It operates in more than 115 countries across Africa, Asia, Latin America, Eurasia and the Middle East.

The latest investment follows Proparco’s €20 million ($23.2 million) commitment in June to support housing expansion in South Africa, underscoring its continued focus on the country’s private sector and development needs.

In 2025, Proparco signed more than 200 projects and committed €3.2 billion, or about $3.7 billion, across its markets.