Swedfund has announced a €15 million investment in the AfricInvest Small Cap Fund, a private equity initiative designed to support the growth of small and medium-sized enterprises (SMEs) across Africa. Recognizing the critical role SMEs play in job creation, innovation, and economic development, this investment seeks to address the persistent challenge of limited access to capital that many businesses face. With a focus on long-term, sustainable growth, AfricInvest will provide financing and strategic guidance to SMEs across various sectors, including agribusiness, healthcare, education, consumer goods, manufacturing, and services. This move underscores Swedfund's commitment to strengthening Africa's private sector, fostering economic resilience, and enabling businesses to reach their full potential.
Beyond financial support, AfricInvest is dedicated to responsible investing, integrating environmental, social, and governance (ESG) principles into its operations. The fund has set a bold gender equality target, with at least 30% of its portfolio allocated to women-led or female-owned businesses. Additionally, climate-related objectives will be embedded in the investment process, ensuring that sustainability remains at the core of economic development. Swedfund's backing will help ensure that African SMEs not only survive but thrive in an increasingly competitive global market while contributing to a more inclusive and environmentally responsible business landscape.
According to Sofia Gedeon, Investment Director for Sustainable Enterprises at Swedfund, the partnership with AfricInvest represents an opportunity to drive meaningful change by unlocking new economic possibilities. "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 are setting new benchmarks for responsible investing," Gedeon said. As African economies continue to evolve, the integration of SMEs into larger supply chains and the expansion of access to financial resources will be critical for long-term success. Swedfund's investment is a step toward bridging financial gaps, empowering entrepreneurs, and shaping the future of Africa's SME ecosystem.
