Sweden’s development finance institution, Swedfund, has committed $15 million to Lightrock Africa Growth Fund II, targeting technology-driven businesses expanding access to financial services, healthcare, energy and transport across underserved African markets.
The investment will provide capital to growth-stage companies with established business models, as investors increasingly seek opportunities in African businesses that combine commercial returns with measurable social and economic impact.
The commitment comes as many African startups and small businesses continue to face difficulties securing the long-term financing needed to expand operations, particularly beyond early-stage venture capital funding.
Lightrock Africa Growth Fund II aims to invest in businesses using technology to address gaps in essential services, including financial inclusion, digital infrastructure and sustainable mobility. The strategy focuses on companies capable of expanding their operations while improving access to services for individuals and small and medium-sized enterprises.
“Many growing businesses in Africa struggle to access the capital needed to expand services that people and small businesses rely on,” said Helen Hagos, Investment Director at Swedfund. “This investment will help businesses scale solutions in areas such as finance, healthcare and sustainable transport, contributing to job creation and stronger local economies. We also see potential for further private capital mobilisation.”
The investment highlights the growing role of development finance institutions in supporting African companies that have moved beyond the startup phase but still face funding constraints as they seek to expand into new markets.
For Swedfund, the commitment is part of a broader strategy to support sustainable economic development through private-sector investments, particularly in markets where access to commercial financing remains limited.
The institution expects the fund to support job creation, strengthen local businesses and improve productivity by financing companies that deliver essential services more efficiently.
The investment also aligns with Swedfund’s priorities in climate action and digitalisation, two areas attracting increasing attention from development investors seeking to support Africa’s economic transformation.
By investing through Lightrock rather than directly into individual companies, Swedfund will gain exposure to a portfolio of growth-stage businesses while potentially helping attract additional private capital into African markets.
The announcement did not disclose the fund’s overall fundraising target, participating portfolio companies or the countries expected to receive the largest share of investment.
The $15 million commitment represents another source of institutional capital for African growth-stage companies at a time when access to expansion financing remains a significant challenge for businesses operating across the continent.
