Swedfund invests in TLG Africa Growth Impact Fund II
The fund combines flexible, long-term debt to SMEs with equity participation and guarantees issued by local banks.
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Swedfund is investing $15 million in the TLG Africa Growth Impact Fund II (TLG II).
TLG II combines flexible, long-term debt to SMEs with equity participation and guarantees issued by local banks. This approach allows TLG to offer loans with tenors and interest rates that help viable but struggling SMEs recover and expand sustainably.
The investment is made alongside Norfund, the IFC, and Bpifrance, bringing the total to $75 million. Swedfund previously invested in the TLG Credit Opportunities Fund in 2018.
“SMEs employ 80% of the African workforce, and nine out of ten new jobs on the continent are created by growing companies. To protect existing jobs and to create new ones is crucial for poverty reduction. For African SMEs to survive and grow, it is important that there is a functioning market with the right, fit for purpose financial services addressing diverse local challenges. Through this investment we help achieving that, generating long-term impact,” says Jakob Larsson, senior investment manager at Swedfund.
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