African SMEs Get Boost As Swedfund Invests USD 16 M In AfricInvest’s Small Cap Fund

Swedfund, Sweden’s state-owned development finance institution, is deepening its commitment to Africa’s economic future with a USD 16.3 M investment in AfricInvest’s Small Cap Fund, a private equity fund managed by a leading pan-African investment platform, AfricInvest.

This strategic move is designed to bridge the financing gap that hinders small and medium-sized enterprises (SMEs) from reaching their full potential, unlocking growth opportunities in sectors that drive innovation, employment, and long-term development.

Across Africa, SMEs serve as economic engines, yet many face significant barriers to accessing capital. By channelling funds through AfricInvest, Swedfund is ensuring that high-potential businesses get the financial backing they need to scale sustainably.

With an ambitious fundraising goal of up to EUR 180 M (USD 187 M), the fund will focus on supporting SMEs across a broad range of industries, from agribusiness and healthcare to education, consumer goods, manufacturing, and services—sectors that are crucial for social and economic transformation.

“This investment strengthens our ability to support underserved businesses across Africa,” says Sofia Gedeon, Investment Director for Sustainable Enterprises at Swedfund. “AfricInvest’s approach aligns with our mission to drive economic growth, create jobs, and set new standards for responsible investing. We are not just financing businesses; we are investing in sustainable development and inclusive progress.”

AfricInvest already has an extensive track record, having raised over USD 2.3 B and backed nearly 230 companies in 38 African countries. Its Small Cap Fund had previously secured funding from Proparco, the private sector financing arm of the French Development Agency, along with a proposal from the International Finance Corporation (IFC), a member of the World Bank Group. Their combined support underscores the fund’s potential to create a meaningful impact by fostering business expansion and job creation across the continent.

The fund integrates rigorous environmental, social, and governance (ESG) principles into its investment strategy, with a strong emphasis on gender equality and sustainability. At least 30% of its portfolio is allocated to women-led businesses or companies with substantial female ownership, reinforcing the link between inclusive business practices and long-term prosperity. In addition, climate-conscious investment strategies are embedded in its operations, ensuring that growth does not come at the expense of environmental responsibility.

This latest commitment follows Swedfund’s USD 20 M investment in AgDevCo earlier this month, which is dedicated to strengthening agribusinesses across sub-Saharan Africa. That funding aims to improve food security, increase rural productivity, and support SMEs that produce nutritious food for both local markets and high-value exports.

With each investment, Swedfund continues to champion sustainable business development, economic inclusion, and a more resilient African business landscape, ensuring that SMEs have the resources and guidance they need to grow responsibly and effectively.