Swedfund, Sweden’s development finance institution, has committed $10 million to Inside Equity Fund II to bolster small and medium-sized enterprises (SMEs) across several African nations, including Zambia, Madagascar, Mauritius, Tanzania, Malawi, and Mozambique.
The goal is to enable SMEs that provide impactful and innovative solutions, stimulating economic growth and development in these regions.
By providing access to finance to underserved SMEs in an overlooked region, Swedfund’s investment will support local private sector and socio-economic development through the creation of decent jobs, increased access to quality goods and services, and generation of income and tax revenues.
The investment in Inside Equity Fund II will provide much needed growth capital to small companies with sustainable business models, tailored to their specific needs.
This will increase economic resilience in regions where access to finance is limited, said Sofia Gedeon, Investment Director of Sustainable Enterprises.
The Fund builds on the success of its predecessor, which focused on sectors such as renewable energy, waste recycling and the production of essential goods.
This approach not only supports economic development but also addresses social and environmental challenges.
Swedfund’s investment is part of a larger commitment by several development finance institutions, including DFC, IFC, BIO, DGGF, Terra Mauricia Ltd and MIC Ltd, all of whom are committed to supporting sustainable long-term growth and development in the region.
Established in Mauritius as a limited partnership, Inside Equity Fund II (IEF II) will invest primarily in Madagascar, Mauritius, Zambia, Malawi, Mozambique, and Tanzania. IEF II aims to provide SMEs with access to equity and quasi-equity capital and provide operational support to help them expand regionally.
Inside Equity Fund II, managed by Inside Capital, follows the successful deployment of Fund I, the first fund of $35 million, which has been fully invested in six innovative and high-impact companies.
These SMEs are active in waste recycling, renewable energy, packaging, building and construction sectors.
