Press release -
Catalysing sustainable growth through SMEs in Southeast Africa
Swedfund, Sweden’s development finance institution, has invested USD 10 million in Inside Equity Fund II, aiming to support small and medium-sized enterprises (SMEs) with impactful and innovative solutions in Zambia, Madagascar, Mauritius, Tanzania, Malawi and Mozambique.
By providing access to finance to underserved SMEs in an overlooked region, Swedfund's investment will support local private sector and socio-economic development through the creation of decent jobs, increased access to quality goods and services, and generation of income and tax revenues.
– The investment in Inside Equity Fund II will provide much needed growth capital to small companies with sustainable business models, tailored to their specific needs. This will increase economic resilience in regions where access to finance is limited, said Sofia Gedeon, Investment Director of Sustainable Enterprises.
Inside Equity Fund II builds on the success of its predecessor, which focused on sectors such as renewable energy, waste recycling and the production of essential goods. This approach not only supports economic development but also addresses social and environmental challenges.
Swedfund's investment is part of a larger commitment by several development finance institutions, including DFC, IFC, BIO, DGGF, Terra Mauricia Ltd and MIC Ltd, all of whom are committed to supporting sustainable long-term growth and development in the region.
About Inside Equity Fund II:
Established in Mauritius as a limited partnership, Inside Equity Fund II (IEF II) will invest primarily in Madagascar, Mauritius, Zambia, Malawi, Mozambique, and Tanzania. IEF II aims to provide SMEs with access to equity and quasi-equity capital and provide operational support to help them expand regionally. Inside Equity Fund II, managed by Inside Capital, follows the successful deployment of Fund I, the first fund of US$ 35 million, which has been fully invested in six innovative and high-impact companies. These SMEs are active in waste recycling, renewable energy, packaging, building and construction sectors.
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About Swedfund
Swedfund is Sweden's development finance institution with the mission to contribute to poverty reduction through sustainable investments in developing countries. Our investments in the private sector contribute to a growing number of jobs offering decent working conditions and increases access to essential products and services like electricity and healthcare. Climate and gender are themes that permeates our investment process.
Swedfund invests in energy & climate, food systems, financial inclusion and increased access to capital for micro, small and medium-sized companies as well as healthcare and digitalization.
We are part of Swedish development corporation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance and financed through portfolio reflows and annual capital injections for which the Swedish Ministry for Foreign Affairs is responsible.
For more information: please visit www.swedfund.se/en | www.edfi.eu
