The investment aims to support female-led enterprises and bolster climate resilience across Africa, as part of a broader mission to drive sustainable economic growth, job creation, and financial inclusion in developing markets.
Swedish development finance institution (DFI) Swedfund has committed €15m to the AfricInvest small-cap fund, a private equity initiative which supports small and medium-sized enterprises (SMEs) across Africa.
AfricInvest aims to invest in sectors such as agribusiness, healthcare, education, consumer goods, manufacturing, and services, while helping businesses to grow responsibly.
Speaking to Impact Investor, Sofia Gedeon, investment director for sustainable enterprises at Swedfund, said: “We invest to increase the availability of capital to help SMEs grow, create more jobs, and increase affordable access to products and services.
“We do this by investing both directly in companies and indirectly, for example through banks, funds and microfinance institutions,” she said.
The investment is part of Swedfund’s broader mission to drive sustainable economic growth, job creation, and financial inclusion across developing markets.
“Poverty, low levels of education and income instability limit the ability of many people to participate in the formal financial system. Creating sustainable jobs is one of the most effective ways to reduce poverty. With 600 million new jobs needed over the next 15 years just to keep employment rates stable, and with 9 out of 10 new jobs created in the private sector, SMEs are crucial,” Gedeon added.
Over the past thirty years, AfricInvest has raised more than $2.3bn (€2.1bn) to finance almost 230 companies at various development stages in 38 African countries.
Gender equality and climate resilience
Gender equality is one of the key pillars of Swedfund’s investment strategy. As such, at least 30% of the AfricInvest’s portfolio will be directed toward women-led businesses or companies with significant female ownership.
This investment strategy aims to dismantle long-standing barriers that women entrepreneurs face in accessing capital and scaling their enterprises.
“SMEs often face difficulties in accessing capital to grow, increase productivity or develop their business. This is particularly true for women entrepreneurs. In Africa, SMEs create about 80% of all jobs, making them essential for employment and lifting people out of poverty,” said Gedeon.
Beyond gender inclusion, the fund also ensures that businesses align with sustainability goals and contribute to climate resilience.
Swedfund’s investment in AfricInvest is part of its broader approach to mobilising capital for impactful investments. Earlier this year, Swedfund along with Norway and Britain’s development finance institutions, Norfund and British International Investment (BII), invested $85m in the African farming sector.
