Swedfund has announced an additional USD 5 million investment in the TLG Africa Growth Impact Fund II (TLG II).
The new commitment brings Swedfund’s total investment in the fund to USD 20 million. This is in addition to an initial USD 15 million investment in 2025. The funding forms part of TLG II’s second close, alongside investments from Proparco, Calvert Impact Capital and several existing investors.
The investment will help remove one of the key barriers to business growth on the continent: limited access to appropriate financing for SMEs. While SMEs are critical to employment and economic development, many SMEs find it difficult to obtain loans with repayment terms that match their growth cycles.
Swedfund seeks to support businesses that are fundamentally viable but face temporary liquidity challenges.
“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 long-term, flexible debt financing to SMEs through a model backed by guarantees issued by partner banks.
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