AfricInvest Gets €15m Funding Support for African SMEs

The money would be managed and disbursed by a private equity initiative, AfricInvest Small Cap Fund.

AfricInvest integrates environmental, social and governance (ESG) principles with a focus on gender equality and sustainability.

The fund aims to invest at least 30 percent of its portfolio in companies that are women-led or have significant female ownership.

Moreover, climate-related objectives will be embedded in the investment process.

Swedfund’s support will help ensure that African SMEs have the resources and guidance they need to grow responsibly and effectively.

With decades of experience and a strong presence across the continent, the fund aims to invest in a range of sectors including agribusiness, healthcare, education, consumer goods, manufacturing and services, and is therefore well positioned to contribute to economic growth and social development.

The choice of SMEs is because they are a cornerstone of economic development, driving job creation and innovation.

However, many companies face significant barriers to accessing capital. This indirect investment can enable more growth-oriented investments to unlock the full potential of SMEs in Africa.

Commenting on the funding support, the Investment Director for Sustainable Enterprises at Swedfund, Sofia Gedeon, said, “This investment will allow Swedfund to expand its support for underserved businesses across Africa.

“AfricInvest aligns its investments with measurable sustainability outcomes, allowing us to drive economic growth, create jobs and promote greater inclusion. At the same time we set new benchmarks for responsible investing.”