Press release -
Swedfund invests in African SME Fund
Swedfund has committed EUR 15 million to the AfricInvest Small Cap Fund, a private equity initiative focused on supporting small and medium-sized enterprises (SMEs) across Africa.
SMEs 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.
— 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, says Sofia Gedeon, Investment Director for Sustainable Enterprises at Swedfund and continues;
— 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.
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.
About AfricInvest
Founded in 1994, AfricInvest is a pan-African investment platform active in multiple alternative asset classes including private equity, venture capital, private credit and listed equities. Over the past thirty years, the firm has raised more than $2.3bn to finance almost 230 companies at various development stages in 38 African countries, delivering value and impact for investors, portfolio companies, and the communities they serve.
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About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector.
Swedfund's investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. Swedfund's feasibility studies support sustainable public infrastructure development, trade, and export opportunities for Swedish solutions.
We are part of Swedish development cooperation, 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
