Swedfund Invests EUR 26 M In AfricInvest’s FIVE To Expand Access To Finance In Africa

Swedfund, Sweden’s development finance institution, has committed EUR 26 M (USD 28.2 M) in AfricInvest’s Financial Inclusion Vehicle (FIVE), an investment vehicle designed to strengthen financial institutions across Africa and bring banking services to people and businesses who’ve been left out of the formal financial system.

The investment is part of Swedfund’s broader strategy to promote inclusive finance by strengthening the capacity of local financial institutions.

It comes after the institution also announced a EUR 15 M (USD 16.3 M) investment in AfricInvest’s Small Cap Fund, which targets small and medium-sized enterprises (SMEs) across the continent. Together, these investments reflect a growing push to unlock capital for underserved entrepreneurs and deepen long-term economic inclusion in Africa.

FIVE was launched by Pan-African private equity firm AfricInvest in 2017 to support Tier II and Tier III financial institutions, those that often serve SMEs, unbanked populations, and low-income individuals.

Swedfund’s latest investment into the platform aims to increase access to financial services for underserved individuals and small businesses, with a focus on digital innovation, economic empowerment and inclusion.

The gap in access to finance across Africa is still wide. Only about one in five people has access to formal banking. For the rest, a lack of financial services means limited opportunities to grow a business, save money, or weather unexpected financial shocks.

Through FIVE, Swedfund’s investment aims to close that gap by supporting financial institutions that are expanding outreach and are using inclusive traditional and digital-first models to reach more clients, especially those in underserved communities.

By strengthening the capital base of these financial institutions, including banks, insurers, and fintechs, Swedfund aims to catalyse more inclusive financial ecosystems, driving job creation and economic growth across the continent.

“Improving access to financial services is a key lever for driving growth in underserved communities,” said Jakob Larsson, Senior Investment Manager at Swedfund. “Our investment in FIVE supports the development of scalable, innovative solutions that can reach more people and strengthen local economies.”

Beyond expanding access, the investment also supports FIVE’s commitment to gender equality and women’s empowerment by embedding inclusive practices that benefit women across its portfolio. companies and communities.

FIVE is supported by a broad coalition of European and African development finance institutions, including agencies from Norway, Denmark, the Netherlands, Germany, and Belgium, as well as African multilateral development banks and pension funds.

The platform is designed to be both catalytic and sustainable, focusing on financial institutions that can deliver lasting impact at scale.