Swedfund Increases Investment in TLG Africa Growth Impact Fund With Additional $5 Million

Swedish development finance institution Swedfund has committed an additional US$5 million to the TLG Africa Growth Impact Fund II (TLG II), increasing its total investment in the fund to US$20 million as it seeks to expand access to finance for small and medium-sized enterprises (SMEs) across Africa.

The latest commitment comes as part of TLG II’s second fundraising close alongside Proparco, Calvert Impact Capital, and several existing investors.

SMEs remain a key driver of employment and economic growth across the continent but continue to face limited access to affordable, long-term financing. Many businesses with strong growth potential struggle to secure loans that match their financing needs, limiting expansion and job creation.

Swedfund said the additional capital will help bridge this financing gap by enabling TLG II to provide flexible credit solutions that support business growth while preserving existing jobs and creating new employment opportunities.

“Through our continued engagement with TLG II, Swedfund helps address an important financing gap for SMEs in Africa. Flexible and tailored credit solutions can support viable companies with temporary liquidity needs, helping to preserve jobs while enabling businesses to recover, grow and create new decent employment opportunities,” said Jonas Tornblad, Investment Manager at Swedfund.

TLG II provides flexible, long-term debt financing to SMEs backed by guarantees issued by partner banks. This model enables the fund to offer loans with longer tenors and more affordable interest rates, giving businesses the financial flexibility to stabilize operations, invest in growth and create sustainable employment.

Swedfund first invested US$15 million in TLG II in 2025. The latest US$5 million commitment brings its total investment in the fund to US$20 million, reinforcing its strategy of supporting private sector development, financial inclusion and sustainable job creation across Africa.

The investment is expected to improve access to finance for underserved SMEs while strengthening local economies through increased employment, resilient businesses and inclusive economic growth.