Swedfund has committed an additional $5 million to TLG Africa Growth Impact Fund II (TLG II), increasing its backing for businesses across Africa that find it difficult to secure suitable financing.
The latest investment aims to help small and medium-sized enterprises (SMEs) protect existing jobs while creating new ones by improving access to long-term funding.
Many SMEs across the continent face limitations when it comes to obtaining loans that match their business needs, despite having strong growth potential.
Swedfund’s investment will help close that funding gap by supporting a credit model that gives viable businesses access to financing on terms that support sustainable growth.
Jonas Tornblad, investment manager at Swedfund, said the additional funding would strengthen the organisation’s support for African businesses.
“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.”
TLG II provides long-term debt financing to SMEs through loans backed by bank guarantees. The arrangement allows the fund to offer financing with repayment periods and interest rates better suited to the needs of growing businesses.
The latest commitment is part of the fund’s second close alongside Proparco, Calvert Impact Capital and other existing investors, including Swedfund.
Swedfund invested $15 million in TLG II in 2025. With the additional $5 million announced on Monday, the organisation has increased its total commitment to the fund to $20 million.
