Swedfund, Sweden’s development finance institution, has announced a $15 million investment in the TLG Africa Growth Impact Fund II (TLG II), a move aimed at preserving and creating decent jobs through expanded access to financing for African small and medium-sized enterprises (SMEs).
The investment is part of a broader $75 million round backed by Norfund, the International Finance Corporation (IFC), and BPI France.
SMEs, which employ 80% of Africa’s workforce, often face challenges accessing appropriately structured debt—especially those that are viable but currently distressed. TLG II offers a scalable credit solution combining flexible long-term debt, equity participation, and local bank guarantees, helping businesses unlock growth and secure jobs.
“Protecting existing jobs and creating new ones is crucial for poverty reduction,” said Jakob Larsson, Senior Investment Manager at Swedfund. “This investment addresses local financing gaps with fit-for-purpose financial services that generate long-term impact.”
TLG II builds on Swedfund’s earlier partnership with TLG through its 2018 investment in the TLG Credit Opportunities Fund, reinforcing its commitment to sustainable private sector development in Africa.
