Swedfund backs TLG’s Fund with $10m in Sub-Saharan Africa
Swedfund has invested $10m in TLG Credit Opportunities Fund (COF) to enable small and medium-sized enterprises in Sub-Saharan Africa to access growth capital and thereby expand their operations.
Maria Håkansson, CEO, Swedfund, said: “Swedfund’s mission is to reduce poverty through investing in sustainable businesses and we are therefore pleased to support TLG’s mission to empower entrepreneurs in Sub-Saharan Africa.”
“Through COF, TLG helps necessary expansion capital reach small and medium-sized businesses.
These companies play a key role in creating formal job opportunities and inclusive growth, which goes hand in hand with Swedfund’s mission. Further, TLG’s focus on tracking impact metrics such as gender equality in its portfolio companies, is very much aligned with Swedfund’s strategy,” she said.
According to the International Finance Corporation, four out of five new jobs in developing countries are created by SMEs and account for up to 33% of GDP.
But in Sub-Saharan Africa, SMEs often have limited opportunities to be granted traditional bank loans as banks tend to focus on larger corporates. The lack of access to finance restricts growth and the creation of more jobs.
TLG launched COF in 2016 to target the SME funding gap across Sub-Saharan Africa.
Since inception, the fund has provided tailored funding solutions to companies in healthcare, retail, telecom and fintech.
COF’s investment strategy fits closely with Swedfund’s business model based on three pillars – impact on society, sustainability and financial viability.
Zain Latif, CEO, TLG Capital, said: “The concept of the fund is simple: To plug the “missing middle” funding gap for Sub-Saharan African SMEs. We are excited to have Swedfund on board as partners and we hope to strengthen the overall economic ecosystem in Sub-Saharan Africa by also working with relevant authorities.” Source: Africa Global Funds