Swedfund pours $16.3 million into African SMEs

Key Points

• Swedfund committed $16.3 million to AfricInvest’s Small Cap Fund to support African SMEs, driving economic growth and sustainable business development.
• At least 30% of AfricInvest’s fund will back women-led businesses, reinforcing gender equality and responsible investment across Africa.
• Swedfund’s latest move follows a $20 million AgDevCo investment, strengthening agribusinesses and food security in sub-Saharan Africa.

Swedfund, Sweden’s state-owned development finance institution led by Maria Håkansson, has committed $16.3 million to support small and medium-sized enterprises (SMEs) across Africa, reinforcing its role in driving economic growth on the continent.

Recognizing that SMEs are the backbone of economic development, driving job creation and innovation, Swedfund has committed €15 million ($16.3 million) to the AfricInvest Small Cap Fund. This private equity initiative focuses on supporting businesses across multiple sectors, ensuring they have the resources to grow sustainably.

Swedfund expands African investment reach

The investment is part of Swedfund’s broader mission to reduce poverty through sustainable private-sector investments and technical feasibility studies. Under Håkansson’s leadership, the institution continues to promote responsible business practices while fostering long-term economic development.

“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. At the same time we set new benchmarks for responsible investing,” said Sofia Gedeon, Investment Director for Sustainable Enterprises at Swedfund.

She added, “With decades of experience and a strong presence across the continent, the fund aims to invest in a range of sectors including agribusiness, healthcare, education, consumer goods, manufacturing and services, and is therefore well positioned to contribute to economic growth and social development.”

AfricInvest expands ESG-focused investments

AfricInvest has already raised more than $2.3 billion to finance nearly 230 companies in 38 African countries, creating value for investors, businesses, and local communities. The fund integrates environmental, social, and governance (ESG) principles, with a strong focus on gender equality and sustainability.

At least 30 percent of the AfricInvest Small Cap Fund’s portfolio will be allocated to companies led by women or with significant female ownership. Climate-related goals will also be embedded in the investment process, ensuring that businesses operate responsibly while contributing to economic progress.

Swedfund’s impact on African communities grows

As Sweden’s development finance institution, Swedfund helps create jobs and improve access to essential goods and services such as electricity and food. Under Håkansson’s leadership, it remains a key player in advancing the 2030 Agenda and the Paris Agreement on climate.

This latest commitment follows Swedfund’s $20 million investment in AgDevCo earlier this month, aimed at supporting agribusinesses across sub-Saharan Africa. That funding is helping improve food security, boost productivity in rural areas, and expand AgDevCo’s portfolio of SMEs producing nutritious foods for local markets and high-value export crops.

With each investment, Swedfund is reinforcing its commitment to sustainable growth, economic inclusion, and a more resilient African business landscape.