Swedfund has invested €15 million in the AfricInvest Small Cap Fund, a private equity initiative aimed at supporting small and medium-sized enterprises (SMEs) across Africa. The investment seeks to address the persistent challenge of capital access for SMEs, which are crucial drivers of job creation, innovation, and economic development on the continent.
Sofia Gedeon, Swedfund’s Investment Director for Sustainable Enterprises, emphasized that the fund aligns with measurable sustainability goals while setting new standards for responsible investing. “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,” she said.
With a track record spanning decades, AfricInvest has a strong presence across Africa and plans to channel funds into key sectors such as agribusiness, healthcare, education, consumer goods, manufacturing, and services. By integrating environmental, social, and governance (ESG) principles, the fund aims to make a lasting economic and social impact.
One of AfricInvest’s key objectives is gender inclusion, with at least 30% of its portfolio allocated to women-led or female-owned businesses. Additionally, the fund incorporates climate-focused strategies into its investment process, ensuring that supported enterprises adopt sustainable practices.
Founded in 1994, AfricInvest is a pan-African investment platform managing various asset classes, including private equity, venture capital, private credit, and listed equities. Over the past 30 years, it has raised over $2.3 billion, financing nearly 230 companies across 38 African countries.
With Swedfund’s backing, AfricInvest is set to enhance its role in bridging Africa’s SME financing gap, providing businesses with the resources and expertise needed to grow responsibly and drive economic transformation across the continent.
